JCR Affirms PH A- Credit Rating, Outlook Stable

The Japan Credit Rating Agency, Ltd. (JCR) has reaffirmed the Philippines’ long-term credit rating at “A-” with a stable outlook, citing the country’s sustained economic recovery and resilience to external shocks.

The move maintains the Philippines’ status as an investment-grade economy, supporting investor confidence and the country’s access to favorable financing.

JCR highlighted the nation’s 5.4% gross domestic product (GDP) growth in the first quarter of 2025 as a key driver for the positive rating.

According to the Bangko Sentral ng Pilipinas (BSP), the strong economic performance was achieved while maintaining price stability, with inflation averaging just 2.0% from January to April.

“Despite increased uncertainty due to changes in U.S. tariff policies, [the] Philippines’ foreign exchange liquidity position remains solid, and JCR expects the economy to retain high resilience to external shocks going forward,” the rating agency said.

JCR projects the Philippine economy will continue to grow in the “upper 5% range” throughout 2025.

BSP Governor Eli M. Remolona, Jr. welcomed the affirmation, stating that it will further attract investment from Japan, one of the country’s key economic partners.

“JCR’s affirmation will support and strengthen investment from Japan, one of the Philippines’ most important partners,” Remolona said. “The BSP will continue to safeguard price and financial stability to boost the country’s resilience amid global headwinds.”

JCR also recognized the government’s commitment to fiscal consolidation through its Medium-Term Fiscal Framework, which aims to reduce the debt-to-GDP ratio and promote macroeconomic stability.

The Philippines’ strong external position was another factor in the rating decision, with gross international reserves standing at US$105.3 billion as of end-April 2025.

The reserve level is enough to cover 7.3 months’ worth of imports and 3.6 times the country’s short-term external debt based on residual maturity, underscoring the country’s buffer against external volatility.

In a similar move, Fitch Ratings in April affirmed the Philippines’ “BBB” rating with a stable outlook, noting easing inflation, prudent monetary policy, and stable public debt levels.

An investment-grade rating signifies low credit risk, which lowers the cost of borrowing for the government and enhances funding for infrastructure and social services.

The continued affirmation by international credit rating agencies reinforces investor confidence in the Philippines’ economic fundamentals and long-term fiscal health.