The Bangko Sentral ng Pilipinas reported Monday that Fitch Ratings has affirmed the country’s “BBB” investment-grade rating but sharply revised its outlook from stable to negative, signaling rising economic risks.
Fitch pointed to mounting global energy shocks as a key factor behind the downgrade in outlook. Even so, the agency expects the Philippine economy to remain resilient, projecting 4.6 percent growth in 2026, driven by recovering public investment despite pressure on household spending from higher energy costs.
BSP Governor Eli M. Remolona Jr. stressed that the economy is still on firm footing, backed by strong growth and a stable banking sector. He said the central bank is on high alert over the impact of rising oil prices and geopolitical tensions, particularly in the Middle East, on inflation and overall economic conditions.
The BSP emphasized it stands ready to act swiftly and decisively, using data-driven measures to prevent inflation risks from escalating.
Fitch also recognized the government’s aggressive response to the energy crisis, including the declaration of a National Energy Emergency, and highlighted the country’s consistent policy reforms as a buffer against external shocks.
The Philippines’ external position remains solid, with foreign reserves at $106.6 billion as of end-March 2026—enough to cover seven months of imports.
While the investment-grade rating ensures continued access to affordable financing, the negative outlook serves as a warning: emerging risks must be addressed to protect the country’s credit standing.
