The Philippines’ robust economic growth and sound fiscal management have been recognized by Japan-based credit rating agency, Rating and Investment Information, Inc. (R&I), which has affirmed the country’s high investment-grade ‘A-‘ rating with a stable outlook. This reaffirms the Philippines’ strong creditworthiness and a positive trajectory for its economy.
The ‘A-‘ rating, which the Philippines first achieved in August 2024, reflects strong macroeconomic stability. This top-tier rating translates to lower borrowing costs for the government and private sector, while attracting more foreign direct investments.
“This is a success that every Filipino should celebrate,” said Finance Secretary Ralph G. Recto. “It means that credit rating agencies and investors maintain a high level of trust in us. This will lead to more investments, more quality jobs, higher incomes, and more Filipinos being lifted out of poverty.”
Key Drivers of the Affirmation
R&I’s decision was based on several key factors that highlight the Philippines’ economic resilience and growth potential:
- Strong Economic Growth: The Philippine economy remains a high-performing economy in Southeast Asia. In the second quarter of 2025, the country’s GDP grew by 5.5%, outperforming major regional peers like China (5.2%), Indonesia (5.1%), and Malaysia (4.5%). This growth is largely fueled by strong domestic demand and a sustained deceleration of inflation.
- Rising Investments: R&I expects both public and private investments to continue their upward trend. The government’s initiatives, such as the Public-Private Partnership (PPP) Code and the CREATE MORE Act, are actively encouraging private sector participation. The country’s expanding IT-BPM and electronics manufacturing sectors are particularly noted as drivers of future growth.
- Steady Fiscal Consolidation: The government’s fiscal strategy has been commended for its progress in reducing the fiscal deficit and improving debt metrics. The fiscal deficit has dropped from 8.6% in 2021 to 5.5% in 2025, with projections to reach 3% by 2030. The administration’s focus on domestic, long-term, and fixed-rate borrowings is also helping to maintain a manageable debt level.
Implications of the Rating
The reaffirmed ‘A-‘ rating is a powerful signal to the global financial community. For the government, it means that funds that would have been used for interest payments can now be redirected to vital public services and infrastructure projects. The rating also bolsters the country’s reputation as a reliable and promising investment destination.
