PH Keeps ‘A-‘ Credit Rating on Economic Reform Gains

The Japan Credit Rating Agency Ltd. (JCR) has affirmed its ‘A-’ credit rating and stable outlook for the Philippines, citing the steady implementation of President Ferdinand Marcos Jr.’s economic reforms.

“The Marcos Jr. administration, which took office in June 2022, is implementing various policies aimed at achieving fiscal consolidation, infrastructure development, and poverty alleviation, and has been making steady progress to date,” JCR said in its June 2025 report.

The ‘A-’ rating is a strong investment-grade score that reflects the country’s robust creditworthiness and macroeconomic resilience.

“Napaka-gandang balita nito. Ibig sabihin, nananatiling malakas ang kumpyansa ng mga credit rating agencies at mga investors sa ating bansa,” said Finance Secretary Ralph G. Recto.

“We remain committed to securing more ‘A’ ratings by staying faithful to our fiscal consolidation plan and Road-to-A strategy,” Recto added.

JCR’s latest rating keeps the Philippines well-positioned among major sovereigns, affirming investor confidence amid global uncertainties.

The credit rating helps lower borrowing costs for both the national government and private sector, freeing funds for infrastructure, education, health care, and social services.

It also supports foreign direct investment inflows and job creation, as more investors consider the Philippines a stable destination for capital.

“This affirmation validates our reforms,” Recto said.

“We have already passed key game-changing reforms, such as the CREATE MORE Act and the Capital Markets Efficiency Promotion Act, and will continue to work on creating an investment-enabling environment to increase the country’s economic growth potential.”

JCR noted that the Philippines’ sustained growth is driven by strong domestic demand, low external debt, and economic resilience to global shocks.

The agency projects the country’s real GDP to grow in the upper 5% range in 2025, despite geopolitical headwinds and changes in U.S. trade policy.

It also highlighted the government’s ongoing fiscal consolidation, with the fiscal deficit shrinking and the debt-to-GDP ratio expected to fall to around 60% by end-2024.

This ratio is among the lowest for sovereigns in JCR’s A-rating category.

The rating agency praised the CREATE MORE Act for improving the tax system and enhancing the business environment through VAT reforms and streamlined incentives.

JCR also acknowledged the government’s progress on infrastructure development under the Build Better More program and its use of public-private partnerships.

In a notable sign of inclusive growth, JCR reported that poverty is declining at a faster-than-expected pace.

Secretary Recto and the country’s economic team continue to engage regularly with JCR and other major credit agencies to present updates on the nation’s fiscal and macroeconomic performance.