Diokno: 'A' rating campaign resumes if U-shaped recovery seen next year

BSP Governor Benjamin Diokno stated that the government's campaign to achieve an 'A' credit rating will resume only if a U-shaped economic recovery is observed next year.

Diokno emphasized that current priorities are on saving jobs and lives during the coronavirus crisis, with projections of a 2-3.4% contraction this year followed by a potential growth rate of 7.1-8.1% in 2021.

Despite economic challenges from the pandemic, Diokno noted that affirmations of the Philippines' investment-grade credit ratings are positive and likened them to an upgrade during normal times.

S&P Global Ratings affirmed the country's 'BBB+' rating with a stable outlook, projecting a 9% growth in 2021 based on containment assumptions for the pandemic.

Moody’s Investors Service maintained its Baa2 rating with a stable outlook and Fitch Ratings affirmed its BBB rating despite changing the outlook from positive to stable due to the economic impact of COVID-19.