BSP hails PH credit rating upgrade amid low inflation
The Bangko Sentral ng Pilipinas (BSP) has welcomed the reaffirmation of the Philippines’ “A-” investment-grade credit rating with a “stable” outlook by Japan-based Rating and Investment Information, Inc. (R&I), citing it as a strong vote of confidence in the country’s economic fundamentals. In a report released Aug. 20, R&I credited the Philippines’ 5.7 percent GDP

By Staff Writer
The Bangko Sentral ng Pilipinas (BSP) has welcomed the reaffirmation of the Philippines’ “A-” investment-grade credit rating with a “stable” outlook by Japan-based Rating and Investment Information, Inc. (R&I), citing it as a strong vote of confidence in the country’s economic fundamentals.
In a report released Aug. 20, R&I credited the Philippines’ 5.7 percent GDP growth in 2024—one of the fastest in Southeast Asia—as a key factor behind its decision, alongside a significant drop in inflation to 0.9 percent in July 2025, the lowest in six years.
R&I also downplayed the impact of the 19-percent reciprocal tariffs recently imposed by the United States, noting the Philippine economy’s limited dependence on U.S. exports.
The credit rater further highlighted the country’s manageable current account deficit, external debt levels, and ample foreign exchange reserves, supported by steady overseas Filipino remittances, as strengthening the Philippines’ external position.
“The low inflation environment is thanks to the agile and evidence-based monetary policy,” BSP Governor Eli M. Remolona Jr. said in a statement.
“This environment supports an investment climate that is conducive to economic growth,” he added.
Remolona emphasized the central bank’s ongoing efforts to uphold financial stability, noting that the BSP continues to implement measures that promote strong bank capitalization, prudent risk management, and good governance.
“These enable banks to finance productive economic activities while navigating a fast-evolving global economic landscape,” the governor said.
R&I’s rating is aligned with other international credit assessments: S&P Global Ratings revised its outlook on the Philippines to “positive” in November 2024, while Japan Credit Rating Agency and Fitch Ratings affirmed the country’s credit rating at “A-” and “BBB,” respectively, both with a “stable” outlook in the second quarter of 2025.
An investment-grade rating signals low credit risk to investors and international lenders, enabling the government to access capital at lower costs.
This in turn allows more budgetary room for critical development spending, including infrastructure, healthcare, and social protection programs.
Lower interest rates tied to improved creditworthiness also benefit private borrowers, supporting domestic investment and consumption.
According to the BSP, maintaining investor confidence is crucial as the country adapts to a complex global economic environment, including ongoing geopolitical tensions and global monetary tightening.
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