Fitch Ratings has maintained the Philippines’ Long-Term Foreign-Currency IDR at “BBB” with a Stable Outlook, citing the country’s solid economic performance and growth prospects.
The “BBB” rating is supported by a strong medium-term growth outlook, expected to help lower government debt, and the Philippines’ large economy compared to its peers.
Fitch forecasts 5.6% GDP growth in 2025, rising above 6% medium-term, driven by infrastructure and reforms.
The Philippines’ domestic focus limits exposure to global trade issues, and low US tariffs offer a potential advantage.
Fitch projects the budget deficit to narrow to 3.6% of GDP by 2026 due to better spending and tax collection, also noting effective inflation management. The “BBB” rating signifies a low default risk and adequate capacity to meet financial obligations.
