THE PHILIPPINES’ international long-term credit rating could be enhanced to “A-levels” once fiscal reform measures pending in Congress, such as amendments to the mining fiscal regime and taxes to the domestic capital markets, are passed, a congressman said on Wednesday.
Congress could approve the pending bills before yearend, Albay Rep. Jose Ma. Clemente S. Salceda said, which could help the country’s macroeconomic conditions be “more favorable” for investments.
“I believe that the Big Three [credit rating agencies] will eventually upgrade our rating to A-levels once we pass fiscal reform in mining and the Capital Markets Efficiency Promotion Act, which will also expand our capital base,” he said in a statement, referring to S&P Global Ratings, Moody’s and the Fitch Group.
“The Senate has already advanced both measures, and I think we might agree on versions for both before Christmas,” he added.
Reforms to the country’s tax structure have been a priority for the Marcos administration amid a tight fiscal space due to borrowings made during the height of the coronavirus pandemic.
S&P Global on Tuesday affirmed as “BBB+” the country’s long-term credit rating, an arm’s reach away from the “A” level sought by the Marcos administration while increased to “positive” from “stable” its outlook due to the Philippines’ strong growth potential. — Kenneth Christiane L. Basilio
