Citing pluses, Japan’s R&I affirms PHL rating
R WORLD » A8
ISRAEL TO MOBILIZE 60,000 RESERVISTS AHEAD OF EXPANDED GAZA CITY MILITARY OPERATION
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OBUST economic growth, low inflation and a “strong external position,” helped affirm the country’s “A-” investment grade rating with a stable outlook from the Japanese credit watcher, Rating and Investment Information Inc. (R&I). The Bangko Sentral ng Pilipinas (BSP) welcomed the affirmation of the country’s investment grade credit rating, noting that evidence-based monetary policy was instrumental in keeping inflation low. BSP Governor Eli M. Remolona Jr. also said the low inflation environment improves the country’s investment climate that leads to faster economic growth. “In line with its financial stability mandate, the BSP continues to strengthen the Philippine banking system through policies that underscore strong capitalization, prudent risk
management, and sound governance. These enable banks to finance productive economic activities while navigating a fast-evolving global economic landscape,” Remolona said.
Strong, sustained confidence: Recto
REACTING to the development, Finance Secretary Ralph G. Recto said the Philippines’ ‘A-’ investment-grade rating affirmed by Rating and Investment Information, Inc. (R&I) reflects strong and sustained confidence of credit rating agencies and investors in the country. “More investments will come in, more decent jobs will be created, incomes will rise, and more Filipinos will be lifted out of poverty,” Recto said in Filipino. The DOF said the ‘A-‘ rating shows “strong” macroeconomic stability and “robust” creditworthiness.
“This translates to lower interest rates on borrowings of the national government and the private sector, and helps attract more foreign direct investments,” the DOF added. The DOF said resources that would otherwise pay for interest may instead be redirected to infrastructure development, enhanced social services, stronger health care and improved education.
R&I touts growth rate
IN its report released on Wednesday, R&I underscored that the country’s growth rate of 5.7 percent in 2024 is one of the fastest in Southeast Asia. It also cited the country’s inflation rate, which fell to a six-year low of 0.9 percent in July 2025. The rating agency said the impact of the 19-percent US reciprocal tariffs is limited, citing the Philippine economy’s relatively low
reliance on exports to the US. It also said the Philippines’s manageable current account deficit and external debt levels, as well as sufficient foreign exchange reserves, underpin the country’s robust external position. Further, the continued growth of overseas Filipino remittances contributed to the favorable external sector outlook. “R&I believes that the present level of current account deficit does not necessarily have negative implications in the assessment of creditworthiness, given its potential as basis of future economic growth,” R&I said in its report. “The country has sufficient level of foreign exchange reserves in comparison with imports. In terms of international investment position, debts exceed financial assets but net debt hovers at a low level in comparison with See “Citing,” A2
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Friday, August 22, 2025 Vol. 20 No. 313
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
HE underperformance of the economy in the first quarter as well as the slowdown in inflation could prompt the Bangko Sentral ng Pilipinas (BSP) to continue easing monetary policy, according to an international think tank. In its latest economic note, BMI, a Fitch Solutions Company, said the BSP is expected to bring down the benchmark policy rate by 50 basis points to 4.75 percent
by the end of the year. BMI noted that while the country’s GDP growth remained below the 5.5-percent goal of the See “Easing,” A2
BNPP AS A HYPERSCALE DATA CENTER? DICT TO DO STUDY By Lorenz S. Marasigan
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HE Department of Information and Communications Technology (DICT) will launch a technical feasibility study on converting the mothballed Bataan Nuclear Power Plant (BNPP) into a hyperscale data center, as the Philippines steps up efforts to position itself as a prime destination for global tech giants. ICT Secretary Henry Aguda said the proposals from locators in Bataan and other areas are under review, noting that
the mothballed facility presents strong fundamentals for a largescale data center. “There are proposals from Bataan and several other locators because the structure is good. We are studying the proposals. It’s just a technical feasibility study first, if it can really be done,” Aguda told reporters on the sidelines of the Philippine Chamber of Commerce and Industry General Membership Meeting in Makati. The BNPP, completed in the See “BNPP,” A2
CREEK CHECK Heavy equipment and construction materials remain idle at the Department of Public Works and Highways–National Capital Region’s (DPWH-NCR) Mariblo Pumping Station site along Mariblo Creek in Barangay Sta. Cruz, Quezon City, on Thursday, August 21, 2025. The Quezon City government has issued a “Letter of Objection,” citing violations of the Water Code of the Philippines, which designates waterways as “non-buildable” zones. City officials further warned that the project could worsen flooding in upstream barangays. The stoppage adds another layer to ongoing disputes between local governments and national agencies over flood-control strategies. NONIE REYES
DOE to issue soon carbon credit guidelines By Lenie Lectura
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COMMUTER RELIEF IN FOCUS Passengers aboard LRT-1, LRT-2, and MRT-3 are rallying behind calls to extend the recently launched 50-percent rail fare discount—currently granted to students, senior citizens, and persons with disabilities—to minimum wage earners as well. The appeal, backed by the TUCP, notes that such an expansion could help wage-earners save up to P840 monthly. NONIE REYES
@llectura
HE Department of Energy (DOE) will release next month the policy guidelines for the issuance, management, and monitoring of carbon credits in the energy sector. “We plan to have it out and effective next month already because it if we don’t this now there might be no movement yet from other agencies,” said DOE Undersecretary Felix William Fuentebella. A Carbon Credit Certificate or CCC refers to a tradeable certificate representing one tonne of carbon dioxide equivalent (tCO2e) of GHG (green
house gas) emissions reduced, avoided, or removed from the atmosphere, verified as real and additional by accredited independent third-party entities using internationally accepted standard methodologies. The draft circular states that CCCs will be issued to those that voluntarily retire coal power plants ahead of the projected economic life; switch to electric vehicles; switch to co-firing in power generation; adopt innovative and developing energy technologies; implement energy efficiency improvements; engage in biofuels blending; and other mitigation activities in the energy sector that have the potential to be issued CCCs as approved by the DOE.
The CCCs may be traded, transferred or retired at the option of the participant with eligible mitigating activities. The certificates may only be traded or used once within and among the carbon markets. The DOE is designated as the lead agency for the energy sector’s GHG inventory and is in charge of coordinating the energy sector’s Nationally Determined Contribution (NDC), while also pursuing sustainable development pathways that promote climate resilience, enhance energy security, and foster economic growth. The Department of Environment and Natural Resources (DENR), which serves as the Designated Na-
tional Authority (DNA) for carbon markets, is tasked to coordinate, authorize, and approve participation in international cooperation under the Article 6 of the Paris Agreement and the Clean Development Mechanism of the Kyoto Protocol. “The DENR is the DNA but there will be a body that will set the rules, standards, and audit. Basically, to preserve the integrity and the reliability of the market. It will be similar to the SEC [Securities and Exchange Commission] and BSP [Bangko Sentral ng Pilipinas]. But it will be the DENR and DOE who will issue the credits in accordance with these rules,” said Fuentebella. See “DOE,” A2
PESO EXCHANGE RATES n US 57.1010 n JAPAN 0.3869 n UK 77.0521 n HK 7.3221 n CHINA 7.9495 n SINGAPORE 44.4608 n AUSTRALIA 36.8473 n EU 66.5170 n KOREA 0.0410 n SAUDI ARABIA 15.2168 Source: BSP (August 20, 2025)