Philippines Affirmed with 'A-' Investment Grade Credit Rating Amid Robust Economic Growth

Strategic Insights -

The country's solid economic foundation, characterized by a growth rate of 5.7 percent in 2024 and a six-year-low inflation rate of 0.9 percent in July 2025, has led to the affirmation of its 'A-' investment grade credit rating by Rating and Investment Information Inc. (R and I). This decision reflects the strong confidence of credit rating agencies and investors in the Philippines, with Finance Secretary Ralph G. Recto stating that more investments will come in, creating decent jobs, rising incomes, and lifting more Filipinos out of poverty. The Bangko Sentral ng Pilipinas (BSP) attributes the low inflation environment to evidence-based monetary policy, emphasizing its role in strengthening the country's investment climate and economic growth.

Key Takeaways:

  • The Philippines has been affirmed with an 'A-' investment grade credit rating by Rating and Investment Information Inc. (R and I), highlighting its strong external position, manageable current account deficit, and sufficient foreign exchange reserves.
  • The country's growth rate of 5.7 percent in 2024 is among the fastest in Southeast Asia, while the inflation rate fell to a six-year low of 0.9 percent in July 2025.
  • The BSP attributes the low inflation environment to evidence-based monetary policy, which has strengthened the country's investment climate and contributed to faster economic growth.
  • Finance Secretary Ralph G. Recto emphasizes that the 'A-' rating reflects strong and sustained confidence of credit rating agencies and investors in the country.
  • The central bank notes that an investment-grade rating signals low credit risk, helping to reduce borrowing costs and enabling the country to allocate more funds to socially beneficial initiatives and programs.
  • The BSP continues to strengthen the Philippine banking system through policies that underscore strong capitalization, prudent risk management, and sound governance.
  • Rating and Information Inc. (R and I) believes that the country's present current account deficit does not necessarily have negative implications for creditworthiness, given its potential as a basis for future economic growth.

Statistics:

  • The Philippines' growth rate is 5.7 percent in 2024 (R and I report, no date specified).
  • The country's inflation rate fell to a six-year low of 0.9 percent in July 2025 (R and I report, no date specified).
  • The Bangko Sentral ng Pilipinas' (BSP) evidence-based monetary policy has contributed to the country's investment climate and faster economic growth.
  • The central bank notes that the Philippines' foreign exchange reserves are sufficient to support the country's imports.
  • The country's external debt levels are manageable, with a net debt level that hovers at a low level in comparison with GDP (R and I report, no date specified).

Sources:

  • Rating and Investment Information Inc. (R and I) report, no date specified.
  • Bangko Sentral ng Pilipinas (BSP) statement, no date specified.
  • Finance Secretary Ralph G. Recto statement, no date specified.