Japanese debt watcher Rating and Investment Information Inc. (R&I) affirmed the Philippines’ investment-grade rating at “A-” with a stable outlook, signaling continued low credit risk for the country.
An investment-grade rating typically lowers borrowing costs, allowing governments to allocate more resources to social programs and development initiatives.
“The economy of the Philippines continues to grow at a relatively high rate among major countries in Southeast Asia,” R&I said in its report.
The agency expects the Philippines to maintain stable economic growth and see rising income levels, supported by strong public and private investments, the expansion of domestic industries like Information Technology and Business Process Management (IT-BPM), and population growth.
R&I also pointed to the country’s inflation rate, which dropped to a six-year low of 0.9 percent in July 2025, as a positive economic indicator.
Regarding trade, R&I noted that the impact of the 19-percent US reciprocal tariffs will likely be limited due to the Philippines’ relatively low dependence on exports to the United States.
The agency further highlighted the country’s robust external position, supported by a manageable current account deficit, sustainable debt levels, and sufficient foreign exchange reserves.
“The National Government’s outstanding debt for 2024 was 60.7% of GDP. R&I believes that the government debt ratio will remain within a manageable level with the progress in reducing fiscal deficits,” the report said.
“The government meets its funding requirements mainly through the issuance of government bonds in the domestic financial market. The country has a certain level of debt affordability, given a manageable interest payment burden.”
R&I also cited the stability of the Philippine banking sector as a key factor supporting the rating.
