The Bangko Sentral ng Pilipinas (BSP) has welcomed S&P Global Ratings’ decision to affirm the Philippines’ long-term “BBB+” and short-term “A-2” sovereign credit ratings—both firmly within investment-grade territory—alongside a positive outlook that signals the possibility of an upgrade within the next two years.
In its assessment, S&P highlighted the Philippines’ above-average economic growth potential, resilient external buffers, and steady policy reforms that continue to strengthen the country’s investment climate. The agency also recognized the BSP’s track record of maintaining low inflation and its demonstrated independence in monetary policymaking.
“This rating decision confirms our view of the Philippines’ favorable long-term growth prospects,” said BSP Governor Eli M. Remolona, Jr., emphasizing that the fundamentals remain solid despite temporary economic moderation.
The country’s GDP growth eased to 4.0 percent in the third quarter of 2025 from 5.5 percent in the second quarter, but S&P stressed that the slowdown is short-lived. The agency projects the economy to expand by 4.8 percent in 2025 before accelerating to 5.7 percent in 2026 and 6.5 percent in both 2027 and 2028.
S&P further noted that the Philippines continues to outperform most economies in the region. For the first three quarters of 2025, the country posted 5.0 percent growth—ranking among the fastest in Asia and ahead of Malaysia (4.7 percent), Singapore (4.3 percent), and Thailand (2.4 percent), and tied with Indonesia (5.0 percent).
Governor Remolona also underscored the country’s strong external position, supported by USD 110.2 billion in gross international reserves as of end-October 2025. This level is equivalent to 7.4 months of imports, more than double the International Monetary Fund’s adequacy benchmark, providing a substantial cushion against global volatility.
An investment-grade rating helps reduce borrowing costs for the government, allowing greater fiscal space for infrastructure, social programs, and development priorities. It also opens doors for businesses by enabling access to more affordable credit, fostering expansion and job creation.
The positive outlook strengthens the Philippines’ trajectory toward a future rating upgrade, which would further boost investor confidence and reinforce the country’s standing as one of the region’s most resilient growth markets.
