The Bangko Sentral ng Pilipinas (BSP) welcomed Moody’s assessment of the country’s access to external financing, following the credit rating agency’s decision to affirm its Baa2 rating with a stable outlook earlier this month.
In a follow-up report to its rating action, Moody’s cited the Philippines’ ability to tap both domestic and international funding markets, alongside “ample foreign-currency reserves,” which it said would help the economy “weather global capital flows volatility.”
“The Philippines has built ample reserves and policy space to absorb external shocks, allowing us to maintain stability even in times of global uncertainty,” BSP Governor Eli Remolona Jr. said in a statement.
As of end-July 2025, gross international reserves were at $105.4 billion, equivalent to 7.2 months of imports and 3.4 times the country’s short-term external debt based on residual maturity.
Moody’s also noted the Philippines’ relatively strong growth performance. The economy expanded 5.4% year-on-year in the first half of 2025, in line with Moody’s full-year forecast of 5.7% and within the government’s target range of 5.5% to 6.5%.
Growth was supported by steady remittances from overseas Filipino workers, which rose 3.1% to $16.75 billion in the first half of 2025.
An investment-grade rating signals low credit risk, helping reduce borrowing costs and enabling the government to allocate more funds for social programs.
