The Bangko Sentral ng Pilipinas (BSP) welcomed Moody’s recent positive assessment of the Philippines’ external sector, underscoring the country’s robust credit profile and economic resilience.
In its latest review following the affirmation of the country’s Baa2 credit rating with a stable outlook in August last year, Moody’s cited the Philippines’ strong access to both domestic and international funding markets, as well as ample foreign-currency reserves—key buffers against global financial volatility.
As of end-July 2025, gross international reserves stood at US$105.4 billion, covering 7.2 months’ worth of imports and 3.4 times the country’s short-term external debt. BSP Governor Eli M. Remolona, Jr. said the Philippines has “built ample reserves and policy space to absorb external shocks,” supporting economic stability amid global uncertainties.
Moody’s also recognized the Philippines’ solid economic performance, noting its growth outpaced regional and rating peers. GDP expanded by 5.4 percent year-on-year in the first half of 2025, in line with the agency’s full-year forecast of 5.7 percent and within the government’s 5.5–6.5 percent target range.
Remittances from overseas Filipinos further bolstered the economy, reaching US$16.75 billion, a 3.1 percent increase from the same period in 2024.
The reaffirmed investment-grade rating reflects low credit risk, enabling the government to secure more affordable financing and allocate greater resources to developmental and social programs.
