The Marcos administration’s economic managers welcomed Japan-based Rating and Investment Information Inc.’s (R&I) decision to affirm the Philippines’ A- investment-grade credit rating with a stable outlook, saying it reflected confidence in the country’s economic fundamentals and fiscal consolidation efforts.
Finance Secretary Frederick Go said the rating affirmation could support the Philippines’ access to financing and efforts to attract investment.
“R&I’s affirmation of the Philippines’ A- rating and stable outlook recognizes the government’s fiscal consolidation efforts and the strength of our economic reforms,” Go said.
“This reinforces confidence, supports access to better financing, and helps attract quality investments that create jobs and expand economic opportunities for Filipinos,” he added.
Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the decision reflected the country’s macroeconomic fundamentals despite global uncertainties, citing a sound banking system, an efficient payments system and a healthy external position.
Remolona said the central bank remained focused on bringing inflation closer to its 3% target to protect household purchasing power and support investment.
“The BSP will continue to take a forward-looking and data-driven approach to monetary policy, financial supervision, payments oversight, and external sector management,” Remolona said.
R&I expects Philippine economic growth to recover to around 5% starting next year, supported by population growth, infrastructure investment and foreign direct investment.
The rating agency viewed delays in infrastructure spending that could pull this year’s growth below last year’s 4.4% as temporary, with budget execution expected to normalize.
R&I also cited the Philippines’ diversified economy, including tourism, information technology-business process management and manufacturing, particularly the semiconductor supply chain.
On public finances, R&I expects the government’s debt ratio to decline over the medium term alongside a narrowing fiscal deficit. It also noted efforts to strengthen tax revenues while maintaining spending on infrastructure and social services.
The agency assessed the country’s external position as manageable, citing foreign exchange reserves and limited external risks.
The government said it would continue efforts to strengthen revenue collection, improve spending efficiency and manage debt while pursuing reforms aimed at attracting investment and supporting economic growth.
