The Japan Credit Rating Agency, Ltd. (JCR) has affirmed the Republic of the Philippines’ investment-grade credit rating of “A-” with a “stable” outlook. This affirmation underscores the country’s robust economic performance and resilience against external challenges.
JCR highlighted the Philippines’ sustained economic growth, noting a 5.4 percent expansion in gross domestic product (GDP) during the first quarter of 2025. This growth was achieved amidst a stable price environment, with inflation averaging a low 2.0 percent for the first four months of the year, as reported by the Bangko Sentral ng Pilipinas (BSP).
“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,” JCR stated. The agency anticipates the country’s GDP growth will remain in the “upper 5% range” throughout 2025.
BSP Governor Eli M. Remolona, Jr., welcomed the rating affirmation, emphasizing its significance for the country’s investment landscape. “JCR’s affirmation will support and strengthen investment from Japan, one of the Philippines’ most important partners. The BSP will continue to safeguard price and financial stability to boost the country’s resilience amid global headwinds.”
JCR also recognized the Philippines’ strong external position and ample foreign exchange reserves, alongside the government’s commitment to fiscal consolidation under its Medium-Term Fiscal Framework. As of the end of April 2025, the Philippines’ gross international reserves stood at US$105.3 billion. This substantial reserve can cover 7.3 months of imports and is 3.6 times the short-term external debt based on residual maturity, indicating a robust buffer against potential economic shocks.
This positive assessment from JCR follows a similar affirmation from Fitch Ratings in April 2025, which also maintained its ‘BBB’ rating with a stable outlook for the Philippines. Fitch cited easing inflation, sound monetary policy, and stable public debt as key contributing factors.
An investment-grade rating like the “A-” from JCR signals low credit risk to international investors, which translates to more favorable financing terms for the Philippines. This is crucial for funding critical public services and infrastructure projects, further supporting the nation’s development goals.
