Finance Secretary Ralph Recto said the Japan Credit Rating Agency’s (JCR) latest affirmation of the country’s investment-grade credit rating of “A-” with a stable outlook is a strong vote of confidence in President Ferdinand R. Marcos Jr.’s sound economic policies.

“This latest development is highly encouraging and shows that the fiscal and economic policies pursued by the Marcos Jr. administration are on track to achieve a growth-enhancing fiscal consolidation,” Recto said in a statement on Thursday.

“Having a high credit rating is a major win for all as this means that the Philippines can have more access to cheaper financing from our development partners and the international capital markets,” he said.

JCR on Wednesday kept the Philippines’ investment-grade credit rating of “A-” with a stable outlook.

The Japan-based debt watcher said the ratings mainly reflect the country’s high and sustained economic growth supported by solid domestic demand, a low-level external debt, its resilience to external shocks supported by accumulated foreign exchange reserves, and its solid fiscal base.

A high credit rating reflects the Philippines’ creditworthiness, sending a signal of confidence to investors and creditors, resulting in lower interest rates and better returns for Philippine bonds.

“This allows the government to channel funds that would have otherwise been allotted for interest payments towards more development programs such as more infrastructure projects, improved social services, better health care system, and quality education,” Recto said.

“It also attracts more foreign direct investments into the country, which will create better employment opportunities for Filipinos,” he added. (PNA)