By Fil Sionil
Japan-based Rating and Investment Information, Inc. (R&I) has raised the Philippines’ credit rating to A- from BBB+, with the outlook now stable.
This upgrade highlights the country’s improved credit profile, underpinned by its macroeconomic stability, robust economic growth, and positive fiscal conditions.
“The Philippine economy has been showing fast growth among the major economies in Southeast Asia. As inflation decelerated from its two-year peak in January 2023, the economy has been growing at a pace that surpasses the previous year since early 2024,” R&I said.
This is the second A-level rating the country has secured, following an upgrade by Japan Credit Rating Agency, Ltd. to A- in 2020.
The Japan-based credit agency also noted the country’s strong external position, declining inflation, stable banking sector, ample foreign exchange reserves, and consistent inflows from Overseas Filipino remittances and foreign direct investments.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona welcomed R&I’s upgrade of the Philippines’ credit rating.
“The BSP is committed to delivering on its mandate of promoting price stability, financial stability, and a safe and efficient payments and settlements system, as this broadly supports sustained and inclusive economic growth,” he said.
“An ‘A-’ rating indicates investment-grade status and lower credit risk, which allows a country to access funding from development partners and international debt capital markets at a lower cost. It also enables the government to redirect funds that would otherwise be allocated for interest payments to socially beneficial programs and projects.
The stable outlook reflects R&I’s opinion on the medium-term prospects for the rating, while a positive outlook from R&I suggests that the rating may be upgraded once the factors being examined are confirmed.
