The Bangko Sentral ng Pilipinas (BSP) on Thursday confirmed that the Philippines has held on to its investment-grade credit rating of “BBB+” with a stable outlook, as reaffirmed by S&P Global Ratings. The rating outlook was revised from “positive” to “stable” due to the ripple effects of the ongoing Middle East conflict on the global economy.
BSP governor Eli M. Remolona Jr. emphasized that the central bank will closely monitor domestic and international developments to maintain price stability and a resilient financial system amid a challenging economic environment.
Despite global uncertainties, S&P highlighted the Philippines’ “above-average economic growth”, projecting 5.8 percent growth in 2026 and an average of 6.2 percent from 2027 to 2029. The stable outlook reflects confidence that the country will sustain strong growth while reducing its fiscal deficit over the next two years, even as external risks rise.
S&P also praised the country’s strong external position, sound inflation management, and a stable banking sector. As of March 2026, the Philippines’ gross international reserves stood at US$107.5 billion, enough to cover 7.1 months of imports and nearly four times its short-term external debt.
An investment-grade rating signals low credit risk and cheaper access to financing, allowing the government to allocate funds for critical programs and services. With a stable outlook, S&P indicates the rating is unlikely to change in the next two years, underscoring the Philippines’ economic resilience in uncertain times.
