THE Bangko Sentral ng Pilipinas (BSP) said the Philippines’ investment-grade credit rating was affirmed by S&P Global Ratings, which retained the country’s long-term rating at “BBB+” and short-term rating at “A-2,” but revised its outlook from “positive” to “stable” due to rising global uncertainties linked to the Middle East conflict.
In a statement, BSP Gov. Eli M. Remolona Jr. said the central bank will continue to closely monitor domestic and global developments and calibrate policies to safeguard price and financial stability.
Despite heightened geopolitical risks, S&P said the Philippines’ credit profile remains supported by “above-average economic growth,” projecting gross domestic product expansion of 5.8 percent in 2026 and an average of about 6.2 percent from 2027 to 2029.
The rating agency said the revised stable outlook reflects expectations that the country will sustain solid growth while gradually narrowing its fiscal deficit over the next two years. However, it flagged increased risks to the Philippines’ external and fiscal metrics stemming from the ongoing Middle East tensions.
S&P noted that the country’s external position remains “an anchor of strength,” citing ample foreign exchange buffers, a stable banking system, and the BSP’s track record in keeping inflation under control.
As of end-March 2026, gross international reserves stood at $107.5 billion, equivalent to 7.1 months of import cover and nearly four times short-term external debt based on residual maturity.
The agency also credited strengthened regulatory oversight by the BSP for improving financial system stability in recent years.
An investment-grade rating indicates low credit risk and supports favorable borrowing costs, enabling the government to fund key programs and services. A stable outlook suggests the rating is unlikely to change over the next two years. / KOC
