Former Albay Congressman and House Ways and Means Committee Chairman Joey Salceda said the Philippines is close to securing an A-level sovereign credit rating, the highest tier of creditworthiness, and potentially within two years under the administration of President Ferdinand Marcos Jr.
Salceda said the latest review by S&P Global Ratings, which affirmed the country’s BBB+ rating with a positive outlook, placing it just one notch below A-.
A positive outlook typically signals a possible upgrade within 12 to 24 months if fiscal and external indicators continue to improve.
The Philippines also carries a BBB rating from Fitch Ratings and Baa2 from Moody’s Investors Service. Japan’s R&I has already granted the country an A- rating, suggesting that at least one major rater sees investment-grade strength at a higher tier.
Salceda said the case for an upgrade rests on numbers. Revenue effort hit 16.7 percent last year—the highest in nearly three decades—while tax collections have expanded at double-digit rates. The government is targeting a fiscal deficit of about 4 percent of GDP by 2028, narrowing further to 3 percent by 2030.
An A rating would materially lower borrowing costs. The Philippines’ interest payments currently consume about 13 percent of revenues, above the 9 percent median for BBB-rated peers.
“Every notch up means real savings,” Salceda argues, freeing fiscal space for classrooms, hospitals and infrastructure rather than debt service.
He dismisses alarm over the 63.2 percent debt-to-GDP ratio, noting that rating agencies assess broader balance sheets, including reserves and institutional strength.
Gross international reserves stood at USD110.2 billion as of late 2025, reinforcing external buffers.
The final push, Salceda said, hinges on expanding housing finance, accelerating industrial investment and boosting tourism receipts to strengthen the current account. “The road to A,” he said, “is about building assets, not shrinking ambition.”
