The Japanese credit agency Rating and Investment Information, Inc. (R&I) has reaffirmed the Philippines’ investment-grade rating of “A-” with a stable outlook, highlighting the country’s strong macroeconomic fundamentals, according to a statement released by the Bangko Sentral ng Pilipinas (BSP).
The rating underscores robust economic growth, subdued inflation, and a solid external position. R&I noted the country’s 5.7 percent GDP growth in 2024, one of the fastest in Southeast Asia, and July 2025 inflation of 0.9 percent, the lowest in six years.
Crucially, R&I downplayed the impact of US reciprocal tariffs, citing the economy’s limited dependence on US-bound exports. The agency also emphasized the manageable current account deficit, low external debt, and adequate foreign exchange reserves, supported by steady overseas Filipino remittances.
BSP governor Eli M. Remolona, Jr. attributed the low inflation to the central bank’s agile, evidence-based monetary policy, which helps sustain an investment-friendly environment. He also highlighted ongoing efforts to reinforce banking sector resilience through sound governance, risk management, and capitalization policies.
The reaffirmation aligns with recent decisions by other major rating agencies, including S&P Global, Japan Credit Rating Agency, and Fitch Ratings, all of which have maintained or improved their assessments of the country’s creditworthiness.
An “A-” rating with stable outlook signals low credit risk, potentially lowering borrowing costs and expanding fiscal space for public investments and social programs, thereby strengthening the country’s long-term economic outlook.
