The Japan Credit Rating Agency, Ltd. (JCR) has affirmed the Philippines’ sovereign credit rating at “A-” with a “stable” outlook, reflecting confidence in the country’s macroeconomic stability and growth trajectory.
JCR’s decision was underpinned by the country’s solid economic performance, with gross domestic product (GDP) expanding by 5.4 percent in the first quarter of 2025. Inflation remained well-contained at an average of 2 percent from January to April, according to the Bangko Sentral ng Pilipinas (BSP).
Despite global uncertainties, including shifts in U.S. trade policy, the JCR noted the country’s strong foreign exchange liquidity and projected GDP growth in the “upper 5 percent range” for the year. The country’s gross international reserves stood at USD105.3 billion as of end-April, enough to cover 7.3 months of imports and more than three times short-term external debt.
“JCR’s affirmation will support and strengthen investment from Japan, one of the Philippines’ most important partners,” BSP Governor Eli M. Remolona, Jr. said, adding that the central bank remains committed to maintaining price and financial stability.
The rating agency also acknowledged ongoing fiscal consolidation efforts under the government’s Medium-Term Fiscal Framework.
In a parallel development, Fitch Ratings reaffirmed its ‘BBB’ rating with a stable outlook in April, citing improved inflation dynamics and sound fiscal management.
The continued investment-grade rating signals low credit risk and supports the country’s access to favorable financing terms for infrastructure and development projects.
