The Bangko Sentral ng Pilipinas on Saturday welcomed a favorable assessment by credit rating agency Moody’s of the country’s access to external financing.
Moody’s said in a periodic review released on Aug. 30 the Philippine government’s “Baa2” rating is supported by the country’s strong economic growth potential and sound fiscal metrics.
It said the Philippines has “strong access to domestic and international funding markets” and “ample foreign-currency reserves,” which help the country weather volatility in global capital flows.
Moody’s also noted the country’s access to domestic and international funding markets as well as “ample foreign-currency reserves.”
The BSP said these factors would help the economy “weather global capital flows volatility.”
“The Philippines has built ample reserves and policy space to absorb external shocks, allowing us to maintain stability even in times of global uncertainty,” BSP Governor Eli Remolona, Jr. said in a statement.
The country’s gross international reserves stood at $105.4 billion as of end-July 2025, the BSP said, equivalent to 7.2 months’ worth of imports and about 3.4 times the country’s short-term external debt based on residual maturity.
Moody’s also noted the country’s broader economic growth, which is higher compared with regional and rating peers.
The Philippines’ gross domestic product (GDP) expanded by 5.4 percent year-on-year in the first half of 2025, which is in line with Moody’s full-year forecast of 5.7 percent and within the government’s target range of 5.5 percent to 6.5 percent.
The economy grew amid stable overseas Filipino (OF) remittances. Cash remittances reached $16.75 billion in the first half of 2025, a 3.1-percent increase from the same period last year.
An investment-grade rating indicates low credit risk, which helps lower borrowing costs and allows the government to channel more resources toward socially beneficial programs.
