The Bangko Sentral ng Pilipinas (BSP) welcomes S&P Global Ratings (S&P)’s affirmation of the country’s long-term[1] “BBB+” and short-term[2] “A-2” sovereign investment-grade credit ratings with a positive outlook.
S&P said its decision reflects the country’s above-average economic growth potential, strong external position, policy continuity, and reforms that improve the investment climate.
BSP Governor Eli M. Remolona, Jr. said, “S&P’s rating decision confirms our view of the favorable long-term economic growth prospects.”
S&P noted the central bank has a track record of keeping inflation low, and a history of independence.
While the gross domestic product growth eased to 4.0% in Q3 2025 from 5.5% in Q2, the rating agency stressed the slowdown is temporary. S&P projects Philippine economic growth at 4.8% in 2025 but expects a quick rebound to 5.7% in 2026 and 6.5% in both 2027 and 2028.
S&P forecasts long-term growth prospects for the country to remain sound and above that of countries with similar ratings. It further noted policy reforms that support foreign direct investments.
As of Q3 2025, the Philippines remains one of Asia’s fastest-growing economies with average Q1-Q3 growth of 5.0%, behind Vietnam (7.9%), tied with Indonesia (5.0%), and ahead of Malaysia (4.7%), Singapore (4.3%), and Thailand (2.4%).
Governor Remolona added that the country remains well-positioned against external risks, supported by USD 110.2 billion in gross international reserves as of end-October 2025—enough to cover 7.4 months of imports, more than twice the International Monetary Fund’s adequacy benchmark.
An investment-grade credit rating enables the government to borrow at lower interest rates, freeing up resources for essential services and infrastructure. It likewise helps businesses access more affordable financing, supporting expansion and job creation.
A positive outlook points to a possible rating upgrade within 24 months, which would further lower borrowing costs and boost investor confidence. PR