BSP hails Moody’s positive review of PH external sector

The Bangko Sentral ng Pilipinas welcomed Moody’s favorable assessment of the Philippines’ external financing position.

In its latest ratings review, Moody’s highlighted the country’s access to domestic and international funding markets and “ample foreign-currency reserves,” which it said help the economy “weather global capital flows volatility.”

The assessment came after Moody’s affirmed the Philippines’ Baa2 rating with a stable outlook in August 2024.

As of end-July 2025, the country’s gross international reserves stood at USD 105.4 billion, enough to cover 7.2 months of imports and about 3.4 times the country’s short-term external debt based on residual maturity.

“The Philippines has built ample reserves and policy space to absorb external shocks, allowing us to maintain stability even in times of global uncertainty,” BSP Governor Eli M. Remolona Jr. said.

Moody’s also cited the country’s economic resilience, noting GDP growth of 5.4 percent in the first half of 2025.

This growth aligns with Moody’s full-year forecast of 5.7 percent and falls within the government’s target range of 5.5 to 6.5 percent.

The expansion was supported by steady overseas Filipino remittances, which rose 3.1 percent year-on-year to USD 16.75 billion in the first half of 2025.

An investment-grade rating signals low credit risk, allowing the government and private sector to borrow at lower costs.

This, in turn, frees up resources for essential programs such as infrastructure, healthcare, and social development.

For the public, Moody’s assessment is significant because it affirms that the Philippines has strong financial buffers, which means the country is better protected from global economic shocks that could otherwise weaken the peso, raise interest rates, and increase living costs.

A stable outlook also boosts investor confidence, helping generate more jobs and economic opportunities for Filipinos.