The Japan Credit Rating Agency Ltd. (JCR) affirmed the Philippines’ investment-grade credit rating of “A-” with a “stable” outlook.
The rating action recognized the Philippines’ sustained economic growth. Data showed that the country’s gross domestic product (GDP) expanded by 5.4 percent in the first quarter.
The Bangko Sentral ng Pilipinas (BSP) said the growth was attained amid stable prices. Inflation averaged 2.0 percent in the first four months of the year.
“Despite increased uncertainty due to changes in US tariff policies, [the] Philippines’ foreign exchange liquidity position remains solid, and JCR expects the economy to retain high resilience to external shocks going forward,” JCR said.
It expects the country’s GDP growth to stay in the “upper 5-percent range” this year.
BSP Governor Eli Remolona Jr. said “JCR’s affirmation will support and strengthen investment from Japan, one of the Philippines’ most important partners.”
“The BSP will continue to safeguard price and financial stability to boost the country’s resilience amid global headwinds,” said Remolona.
JCR also cited the country’s strong external position and ample foreign exchange reserves as well as government efforts towards fiscal consolidation under the Medium-Term Fiscal Framework.
The BSP said that as of end-April 2025, the Philippines’ gross international reserves reached $105.3 billion, sufficient to cover 7.3 months of imports and 3.6 times short-term external debt based on residual maturity.
Fitch Ratings also affirmed its ‘BBB’ with a stable outlook for the Philippines in April 2025, citing easing inflation, sound monetary policy, and stable public debt as key factors.
An investment-grade rating signals low credit risk and favorable financing terms for critical public services and infrastructure.
“The Marcos Jr. administration, which took office in June 2022, is implementing various policies aimed at achieving fiscal consolidation, infrastructure development, and poverty alleviation, and has been making steady progress to date,” JCR said in its report.
Department of Finance Secretary Ralph Recto welcomed the JCR’s affirmation of the credit rating. “We remain committed to securing more ‘A’ ratings by staying faithful to our fiscal consolidation plan and Road-to-A strategy,” Recto said.
“We have already passed key game-changing reforms, such as the CREATE MORE Act and the Capital Markets Efficiency Promotion Act, and will continue to work on creating an investment-enabling environment to increase the country’s economic growth potential,” he said.
Recto said an ‘A-’ rating is a strong investment-grade score that reflects robust creditworthiness and macroeconomic stability. It signals confidence to investors and creditors, resulting in lower interest rates on borrowings of the national government and the private sector.
This allows the government to channel funds that would have otherwise been allotted for interest payments towards more development programs, such as more infrastructure projects, improved social services, a better health care system, and quality education, he said.
Recto said it also helps attract more foreign direct investments into the country, which will create better employment opportunities for Filipinos.
The JCR’s latest affirmation keeps the Philippines well-positioned to maintain high investment-grade ratings from all major global and regional credit agencies, he said.
