Malacañang lauded on Monday Japan Credit Rating Agency for its upgrade on the Philippines, saying this affirmed the international community's "faith" on the country's economy.

Last June 11, JCR announced that it has upgraded the Philippines' ratings to "A-", one notch higher than BBB+, with a stable outlook.

"This recognition by Japan's leading credit agency is an affirmation of the international community's faith in our economic strength and resilience amid the worst global downturn in nearly a century," Presidential Spokesperson Harry Roque said in a virtual press briefing.

With the upgrade, he said this means it would be easier for the Philippines to borrow because lending agencies believe the country could pay back its loans.

"And because our credit standing is better, this means there is lower interest rate for our loans, and the loans could be used not only for our assistance but also for our COVID-19 (coronavirus disease) responses," Roque said.

Roque said the Palace thanks the economic team for its initiatives, including reforms that helped the government weather the pandemic and steer the economy towards the new normal.

JCR acknowledged the downward pressure on the Philippine economic growth due to the implementation of quarantine measures to contain the spread of the virus.

However, it said that the 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% of GDP (gross domestic product)."

JCR also expressed belief that the government's debt would "remain comparatively subdued" despite the government's stimulus package, which is justifiable at this time.

It also cited the government's commitment to its infrastructure development policy and the "momentum for reforms" for pushing the tax reform measures, including the corporate tax cut. Celerina Monte/DMS