The country’s banking system remains resilient, underpinned by sustained economic growth and robust capitalization, Japan Credit Rating Agency (JCR) said Thursday, supporting the Philippines’ “A-” investment-grade rating with a stable outlook.
“Through government-led infrastructure projects, the economy has maintained strong growth driven by solid private consumption and fixed capital formation,” JCR said, adding that high growth is expected over the medium term.
The agency also cited the Marcos Jr. administration’s progress on fiscal consolidation, poverty reduction, and infrastructure investment.
Philippine banks showed strong financial health, with capital adequacy ratios at 16.5% and non-performing loans falling to 3.1% as of July 2025, compared with 3.6% in 2021.
Loan growth remains strong, while asset quality and capitalization exceed both domestic and international standards.
Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said they continue to “implement policies that promote robust capitalization and sound risk management among banks.”
JCR highlighted easing inflation, which averaged 1.7% in the first eight months of 2025, and gross international reserves of $105.9 billion, equivalent to 7.2 months of imports and 3.4 times short-term external debt. The agency said these factors contribute to the country’s resilience against external shocks.
“Continued progress on income growth, poverty reduction, domestic employment, infrastructure, and reforms will support the credit rating, while setbacks in fiscal reform could have a negative impact,” JCR said.
