The Philippines’ reaffirmed Baa2 credit rating from Moody’s Investors Service is expected to strengthen investor confidence, lower borrowing costs, and support the government’s push for sustained, reform-driven economic growth.
Finance Secretary Frederick D. Go welcomed Moody’s positive assessment, highlighting the role of structural reforms under the Marcos Jr. administration.
“Moody’s assessment affirms that the Philippines is on the right track. We will continue to uphold fiscal discipline, accelerate strategic investments, and fast track reforms toward sustainable growth,” Go said.
Moody’s February 12 report cited the country’s strong macroeconomic fundamentals, sound regulatory framework, and resilient financial system. The Baa2 rating reflects the Philippines’ solid access to both domestic and international funding markets, a stable banking sector, and ample foreign currency reserves to cushion against global volatility.
The affirmation sends a clear signal to global investors that the Philippines remains a reliable destination for capital. The rating comes as public infrastructure spending accelerates and private investment continues to expand.
Moody’s expressed confidence that the country will maintain resilient growth relative to regional peers, supported by robust household consumption, steady overseas remittances, and ongoing economic reforms.
Fiscal consolidation also earned Moody’s praise. The agency projects the budget deficit to narrow from 5.6 percent of GDP in 2025 to 4.3 percent by 2028, driven by stronger revenue collection and more efficient government spending.
The rating reaffirmation could unlock additional foreign investments, reduce government borrowing costs, and provide a favorable backdrop for long-term development projects. It also strengthens the Philippines’ position in global capital markets, giving policymakers more room to invest in priority sectors without compromising fiscal stability.
With careful fiscal management and sustained reforms, the government aims not only to maintain its Baa2 rating but also to position the Philippines for an eventual upgrade. The strategy seeks to support stronger, investment-led growth in the coming years and ensure the country remains an attractive destination for both local and international investors.
