DoF does not see corruption scandals affecting PHL ratings

THE PHILIPPINES is unlikely to face a credit rating downgrade as a result of its various corruption scandals, with macroeconomic fundamentals still intact, according to the Department of Finance (DoF).

“Personally, I find it remote that we actually have to go through a downgrade because the macroeconomic fundamentals, which are one of the major criteria for S&P, are still there. They’re intact despite this problem,” Finance Assistant Secretary Neil Adrian S. Cabiles said on the sidelines of a BusinessWorld event on Tuesday.

Executive Secretary and former Finance Secretary Ralph G. Recto has said that the multibillion-peso flood control scandal prevented the Philippines from winning a credit rating upgrade from S&P Global Ratings. 

In November 2024, S&P affirmed its “BBB+” long-term credit rating for the Philippines, which is a notch below the “A” level grade targeted by the government.

Mr. Cabiles also noted that the corruption issue is just one factor credit raters consider.

“What is important is that we deliver the message to the credit ratings agencies that we are actually doing something about it (to address concerns about) the quality of our institutions,” he said.

The various credit ratings agencies differ in how they weigh the factors, Mr. Cabiles said, with some assigning more importance to quality of institutions, while others may pay closer attention to macroeconomic factors.

Currently, Fitch Ratings rates Philippines at “BBB” with a stable outlook, Moody’s Ratings grades the Philippines “BAA2,” Japan Credit Rating Agency assesses the Philippines “A-.” — Aubrey Rose A. Inosante