THE Philippines’ ability to secure funding at favorable terms is expected to strengthen further after global credit rating agency Moody’s gave a positive assessment of the country’s external financing capacity, citing ample foreign-currency reserves and steady access to both domestic and international markets.
The latest review, which followed Moody’s affirmation of the country’s Baa2 rating with a stable outlook in August 2024, highlights the resilience of the economy against global capital flow volatility. As of end-July 2025, the Philippines’ gross international reserves stood at US$105.4 billion—enough to cover 7.2 months of imports and 3.4 times the country’s short-term external debt.
Bangko Sentral ng Pilipinas Gov. Eli M. Remolona Jr. said the country’s reserves and policy space have given the economy a strong buffer. “These measures allow us to absorb external shocks and maintain stability even in times of global uncertainty,” he said.
Moody’s also underscored the Philippines’ growth momentum, with gross domestic product rising 5.4 percent year-on-year in the first half of 2025, broadly in line with its 5.7 percent full-year forecast and within the government’s 5.5 to 6.5 percent target range. Sustained inflows from overseas Filipino workers supported the expansion, with cash remittances increasing 3.1 percent to $16.75 billion in the same period.
Analysts note that maintaining an investment-grade rating lowers credit risk and borrowing costs, giving the government more fiscal room to fund infrastructure and social programs that boost long-term growth. / KOC