The Bangko Sentral ng Pilipinas (BSP) welcomed the affirmation by Japanese credit watcher Rating and Investment Information Inc. (R&I) of the Philippines’ “A-” investment-grade rating with a “stable” outlook.
The bank said this reflected the country’s robust growth, low inflation and strong external position, with R&I citing its 5.7-percent growth in 2024 as one of the fastest in Southeast Asia and its six-year low inflation rate of 0.9 percent in July 2025.
The Japanese rating agency also cited the local economy’s low reliance on exports to the United States as a limiting factor to the impact of the 19-percent US tariffs in the Philippines.
The country’s manageable and current account deficit, external debt levels and foreign exchange reserves were cited as drivers to its robust external position, while the growth of overseas Filipino remittances contributed to its favorable external sector outlook.
Overall, the agency stressed the banking sector’s stability as a key driver for its affirmed investment-grade rating.
“The low inflation environment is thanks to the agile and evidence-based monetary policy. This environment supports an investment climate that is conducive to economic growth,” said BSP Governor Eli Remolona Jr.
“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,” he said.
The latest rating aligned with the positive assessments of other credit rating agencies such as the S&P Global Ratings, with its revised positive outlook in November 2024.
Other agencies like the Japan Credit Rating Agency and Fitch Ratings also affirmed the country’s “A-” and “BBB” rating, respectively. Both also affirmed a “stable” outlook in the second quarter of 2025.
The “A-” rating is the highest credit score the Philippines has received from an international rating agency. It also holds a similar “A-” rating from the Japan Credit Rating Agency Ltd.
An “A-” rating is considered investment-grade, indicating lower credit risk. This allows a country to access funding from development partners and international debt capital markets at a lower cost. R&I also affirmed the Philippines’ foreign currency short-term debt rating at “a-1”.
R&I said in a statement the Philippines is expected to have stable economic growth and a higher income level due to robust public and private investments, the development of domestic industries like IT-BPM and population growth.
The agency noted that the fiscal balance as a share of gross domestic product (GDP) has improved and the government debt ratio will likely start falling in the next one to two years. R&I said the current account deficit and external debts are manageable, with limited concern on the external front. The country’s banking sector also remains stable.
The Philippine economy continues to grow at a relatively high rate compared to its Southeast Asian neighbors. R&I noted that in addition to the service industry, the expansion of manufacturing bases, particularly in electronics, can be expected.
