​Source:  https://www.dof.gov.ph/agri-education-reforms-top-sulong-recommendations/

Category:Press Release
Date:June 11, 2020
Agency:Investor Relations Office
Title:Japan Credit Rating Agency upgrades Philippines’ rating to A- : Debt watcher cites country’s resilience amid pandemic
Article:Japan Credit Rating Agency (JCR) upgraded the Philippines’ credit rating by a notch from BBB+ to A- , citing the country’s resilience amid a pandemic that has slowed down growth, impaired fiscal positions and hurt credit ratings of economies across the globe.

JCR assigned a “stable” outlook on the new rating, which indicates that the “A-” will be maintained over the near term.

In a report released Thursday, JCR said its decision to raise the Philippines’ credit rating came on the back of its assessment that the impact of the COVID-19 crisis on the domestic economy and the government’s fiscal standing will be temporary, given the country’s strong fundamentals going into the crisis, the massive relief measures, as well as the pursuit of important legislation, such as the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) under the Comprehensive Tax Reform Program (CTRP).

“JCR holds that a downturn will be limited given the country’s strengthened economic base, resilient external position, and the government’s economic stimulus package totaling more than 9 percent of GDP. JCR also considers that the fiscal soundness will not be impaired because while the fiscal deficit may widen, the package at this time is justifiable and the government debt will remain comparatively subdued,” JCR said.

In response to JCR’s rating decision, Finance Secretary Carlos Dominguez III said: “The A- rating upgrade from JCR, which comes at a time when economies across the world are reeling from what could likely become the worst global downturn in nearly a century, is a solid recognition of the Philippines’ capability to stage a quick and strong recovery from this health crisis.”

“Sweeping initiatives, such as tax reform that President Duterte carried out since he took over in 2016, have placed the Philippines in a strong fiscal position to deal with—and overcome—the financial shocks unleashed by the coronavirus disease 2019 (COVID-19) pandemic,” Dominguez said. “Our government’s proactive response to the crisis, as embodied in its Four-Pillar Socioeconomic Strategy against COVID-19, will clear the way to an economic bounce-back that is strong, sustainable, and resilient.”

“We thank JCR for its trust and confidence in the ability of the Philippine government to steer the economy back to its high-growth trajectory in due time,” Dominguez added.

The government’s Four-Pillar Socioeconomic Strategy against COVID-19 includes the following: (i) emergency support for vulnerable groups and individuals; (ii) marshalling of resources to fight COVID-19; (iii) fiscal and monetary actions to finance emergency initiatives and keep the economy afloat; and (iv) an economic recovery program focused on getting businesses back on their feet to sustain and create jobs. The strategy has a combined value of Php1.74 trillion or 9.1 percent of GDP.

Dominguez said the economic reform agenda of President Duterte continues as the government deals with the COVID-19 crisis. In particular, the Department of Finance (DOF) is pushing the swift congressional passage of the proposed CREATE bill, which promises to be the biggest economic stimulus for businesses in the country’s history.

For his part, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said: “JCR’s assignment of an A- rating to the Philippines is encouraging news at this challenging time. The agency’s decision reflects its confidence that the Philippines is pursuing appropriate policies that will help Filipino individuals, businesses, and the economy at large to recover from this unprecedented crisis. On the part of the BSP, we have already implemented a long list of extraordinary relief measures, and we stand ready to do more if needed.”

“While we have temporarily veered our attention away from the ‘Road to A’ agenda because our focus at the moment is on saving lives, jobs, and livelihoods, we welcome positive assessments from international observers like JCR. We hope this helps to uplift the Filipino spirit at this trying time and to inspire us to work harder together to emerge stronger after the pandemic,” Diokno added.

Meanwhile, Acting Secretary Karl Kendrick T. Chua of the National Economic and Development Authority (NEDA) said: “The Philippines had continued to strengthen its macroeconomic fundamentals prior to the COVID-19 pandemic. As a result, we have sufficient fiscal space and economic resiliency to address the pandemic. We are currently working with Congress to enact a recovery program. JCR’s latest credit action in the Philippines is an affirmation of the economy’s resilience.”

Looking ahead, JCR expects the Philippine economy to bounce back with a growth anywhere between 6 and 7 percent in the medium term following an anticipated contraction this year due to the effects of COVID-19.

The debt watcher likewise recognized the stability of the banking sector, noting that the average capital adequacy ratio of banks in the country stand at a comfortable 15 percent.

It also cited the country’s manageable external debt balance (which was kept low at 22.2 percent of GDP as of end-2019) and the robust foreign currency reserves.

“JCR holds that the country will show its high resilience even when global risk-off moves would be triggered again by a second wave of COVID-19 pandemic,” it said.

The credit rating upgrade from JCR bodes well for the Philippine government’s fund-raising activities, which in recent years have included regular issuance of Samurai bonds. The investment guidelines of many Japanese institutional investors allow them to invest if JCR assigns an A- rating or higher.

Improvements in the Philippines’ investment grade ratings help the Government to easily access funding at favorable costs and help boost overall investor perception on the Philippines. The savings generated from cheaper borrowings will allow the government to spend more of its resources for much needed social services, such as health care and education as well as in job-generating infrastructure projects.

The rating upgrade from JCR came following the decision of Fitch to affirm the “BBB” rating it assigns to the Philippines, and the move of S&P Global to affirm the country’s “BBB+”. Both investment grade ratings have a “stable” outlook.

The latest favorable rating actions on the Philippines by various credit rating agencies come amid a wave of credit rating downgrades and negative outlook revisions globally, as the COVID-19 pandemic take its toll not only on lives and livelihoods, but also on creditworthiness of many sovereigns.

The rating peers of the Philippines (sovereigns with ratings of BBB+ to A) with JCR include the following: Malaysia, Italy, Poland, and Portugal (all of which are rated A); Thailand, Mexico, Hungary, and Peru (all of which are rated A-); and India and Indonesia (which is rated BBB+).

Out of the 14 credit rating actions that JCR have done since the start of the year, only three involved credit rating upgrades while the rest of the actions were either rating downgrades, negative outlook revisions, or rating affirmation.

On the other hand, Fitch, S&P, and Moody’s Investors Service have implemented a total of 37 sovereign credit rating downgrades and 84 negative outlook revisions during the first five months of this year.

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ABOUT Japan Credit Rating Agency (JCR)
JCR is a leading credit rating agency in Japan. Its ratings services cover over 60 percent of the estimated 1,000 publicly traded issuers in Japan and over 200 foreign issuers, including 36 sovereigns.

JCR is the only Japanese rating agency that is also officially registered in the US and certified in the EU.

JCR, through its International Department Head, Mr. Atsushi Masuda, serves as Chair of the Association of Credit Rating Agencies in Asia (ACRAA), the caucus of credit rating agencies in the region.
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Source:  https://iro.ph/articledetails.php?articleid=3305&catid=4
​For inquiries, please contact:
Michelle V. Remo
Information and Communications Management Unit
Investor Relations Office (IRO)
Bangko Sentral ng Pilipinas (BSP)
+63 2 928 501 8423
[email protected]
[email protected]

MANILA, Philippines — Philippine offshore gaming operators and other forms of gambling are not yet allowed even in areas under general community quarantine, Malacañang said Sunday.
Presidential spokesperson Harry Roque noted that POGOs are under the amusement and leisure category, which is considered non-essential because it is not related to health and food
"That (POGOs) is under amusement and leisure so it is part of the negative list, along with schools, religious gatherings, kid industry, and tourism," Roque told radio station dzBB.

"While POGOs can seek exemptions and authority from PAGCOR (Philippine Amusement and Gaming Corp.), there is no recommendation yet from IATF (Inter-Agency Task Force on the Management of Emerging Infectious Diseases)," he added.
The IATF is the policy-making body on the government's COVID-19 response.

President Rodrigo Duterte has extended the enhanced community quarantine in "high-risk" areas Metro Manila, CALABARZON, Bataan, Bulacan, Nueva Ecija, Pampanga, Oriental Mindoro, Occidental Mindoro, Albay, Catanduanes until May 15.
Benguet, Pangasinan, Tarlac, Zambales, Antique, Iloilo, Aklan, Capiz, Cebu, Cebu City, Davao del Norte, Davao de Oro, and Davao City were also placed under enhanced community quarantine but the government would study whether restrictions in these areas could be eased after April 30.
Other areas were placed in the "moderate" or "low" risk categories and are now under general community quarantine. Under the modified quarantine, non-leisure stores in malls may partially open, public transportation may operate at reduced capacity, some sectors are allowed to operate and some workers can go out and work in phases.

While POGOs are contributing billions to state coffers, they have been tied to illegal activities like money laundering, human trafficking, prostitution, tax evasion, kidnapping, and bribery of immigration personnel.
Last Friday, 53 people, including Chinese nationals and Filipinos, were arrested for allegedly violating quarantine measures by carrying out POGO operations in Parañaque City. They are facing charges for violating the Bayanihan Act.
Roque said the government would enforce laws against people who defy the measures being implemented to contain the coronavirus disease.
"We have the 'Bayanihan to Heal as One Act' and if you violate its regulations while we are under an emergency, you would face charges. The violation of the quarantine can serve as a basis to prosecute or punish anyone," the Palace official said. 


​Alexis Romero (Philstar.com) - April 26, 2020 - 5:43pm
https://www.philstar.com/headlines/2020/04/26/2009961/palace-no-pogos-other-forms-gambling-during-quarantine

Giving Hearts - Saving Lives!!!

​While it is good to give something, it is even greater to share the love, the light and prayers to our warriors!!!

Thank you donors for your generous and GOD hearts, we were able to distribute 500 on our 1st wave and 150 on our 2nd wave of distribution of washable face masks to our covid19 superheroes, our front liners ....

May GOD continue to protect you and your families...

We PRAY as ONE
Together, we can OVECOME and
We HEAL as ONE

#DeiDREAM
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FOR RELIABLE & OFFICIAL SOURCES OF INFORMATION, PLEASE GO VISIT THESE WEBSITES:

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​Continue to STAY at HOME
We PRAY AS ONE
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