The Bangko Sentral ng Pilipinas (BSP) welcomed the affirmation of the Philippines’ “A-” investment-grade rating with a “stable” outlook by Japanese credit watcher Rating and Investment Information, Inc. (R&I).

The rating reflects the country's robust growth, low inflation, and strong external position.

In its report released on August 20, R&I underscored that the country’s growth rate of 5.7 percent in 2024 is one of the fastest in Southeast Asia. It also cited the country’s inflation rate, which fell to a six-year low of 0.9 percent in July 2025.

The rating agency said the impact of the 19-percent US reciprocal tariffs is limited, citing the Philippine economy’s relatively low reliance on exports to the US.

It also said the Philippines’ manageable current account deficit and external debt levels, as well as sufficient foreign exchange reserves, underpin the country’s robust external position.

Likewise, the continued growth of overseas Filipino remittances contributed to the favorable external sector outlook.

The agency also cited stability of the banking sector as a key rating driver.

“The low inflation environment is thanks to the agile and evidence-based monetary policy. This environment supports an investment climate that is conducive to economic growth,” BSP Governor Eli Remolona, Jr. said.

“In line with its financial stability mandate, the BSP continues to strengthen the Philippine banking system through policies that underscore strong capitalization, prudent risk management, and sound governance. These enable banks to finance productive economic activities while navigating a fast-evolving global economic landscape,” added the Governor.

The latest rating decision by R&I on the Philippines echoed the positive assessments of other credit rating agencies.

S&P Global Ratings revised its outlook on the Philippines’ rating to positive in November 2024, while Japan Credit Rating Agency and Fitch Ratings affirmed the country’s credit rating at “A-” and “BBB,” respectively, with “stable” outlook in Q2 2025.

An investment-grade rating signals low credit risk, thereby helping reduce borrowing cost. This enables a country to allocate more funds to socially beneficial initiatives and programs. Bangko Sentral ng Pilipinas