Positive outlook boosts hopes for an upgrade
The Philippines scored a major vote of confidence as S&P Global Ratings affirmed the country’s investment-grade credit rating, saying the economy remains one of Asia’s strongest despite a temporary slowdown.
The Bangko Sentral ng Pilipinas (BSP) on Thursday announced that S&P maintained the country’s long-term “BBB+” and short-term “A-2” ratings, with a positive outlook—signaling the possibility of a rating upgrade within the next two years.
S&P cited the country’s above-average growth potential, strong external position, and steady economic policy reforms. It also highlighted the BSP’s history of keeping inflation low and maintaining independence.
BSP Governor Eli M. Remolona, Jr. said the decision “confirms our view of the favorable long-term economic growth prospects.”
While GDP growth slowed to 4 percent in Q3 2025 from 5.5 percent in Q2, S&P called the dip temporary. The agency projects growth of 4.8 percent in 2025, before rebounding to 5.7 percent in 2026 and 6.5 percent in 2027 and 2028—above most similarly rated economies.
From January to September, the Philippines posted 5 percent average growth, ranking among Asia’s fastest-growing economies, behind Vietnam but ahead of Malaysia, Singapore, and Thailand.
The country’s resilience is further supported by USD 110.2 billion in gross international reserves, enough to cover 7.4 months of imports—more than double the IMF benchmark.
An investment-grade rating allows the government to borrow more cheaply, freeing funds for social services and infrastructure. It also helps businesses secure more affordable financing, supporting expansion and jobs. A potential upgrade would amplify these benefits, strengthening investor confidence.
