Japan-based Rating and Investment Information, Inc. (R&I) has affirmed the Philippines’ A- investment-grade credit rating and kept its outlook at “stable,” citing resilient economic fundamentals and an improving fiscal trajectory, the Department of Finance (DOF) said.
The move reinforces international investor confidence in the country and supports government efforts to attract high-value investment and sustain economic growth.
In its August 2026 rating action, R&I said it expects the Philippines’ economic expansion to continue, supported by population growth, infrastructure investment, and foreign direct investment inflows. The agency also pointed to an improving fiscal balance and a positive medium-term debt-ratio outlook.
R&I highlighted the Philippines’ relatively strong growth performance within Southeast Asia, attributing it to a diversified industrial base spanning tourism, IT-BPM, and manufacturing, particularly the semiconductor supply chain.
At the same time, the agency was candid about near-term headwinds. It expects 2026 economic growth to lag behind 2025’s pace as the country continues to absorb the fallout from corruption-linked infrastructure spending delays, though it characterized the disruption as temporary. R&I said enhanced safeguards, stricter project planning, and stronger monitoring should improve transparency and governance in budget execution and infrastructure delivery, with growth expected to rebound toward the 5 percent range as budget execution normalizes.
On external accounts, R&I described the country’s position as manageable, noting that foreign exchange reserves remain sufficient relative to imports and that external risks remain limited.
On fiscal policy, the agency credited the government’s consolidation efforts while sustaining growth, assessing debt levels as manageable and expecting them to decline over the medium term alongside a continued narrowing of the National Government’s fiscal deficit. It also noted ongoing efforts to strengthen tax revenues through reform while preserving priority spending on social services and infrastructure.
Acting Finance Secretary Frederick Go welcomed the affirmation: “R&I’s affirmation of the Philippines’ A- rating and stable outlook recognizes the government’s fiscal consolidation efforts and the strength of our economic reforms. This reinforces confidence, supports access to better financing, and helps attract quality investments that create jobs and expand economic opportunities for Filipinos.”
The Philippines currently holds investment-grade ratings from five agencies. The two Japanese agencies, R&I and JCR, have been the most consistently favorable, both holding the country steady at A- with stable outlooks through 2025 and into 2026. R&I first upgraded the country to A- in August 2024 from BBB+ with a positive outlook and has affirmed that level every August since. JCR, the first agency to award the Philippines an A- rating in 2020, most recently reaffirmed it in February 2026, citing robust economic fundamentals, effective policy measures, and solid progress on fiscal reform.
The three Western agencies have grown more cautious in 2026. S&P Global Ratings revised its outlook down from “positive” to “stable” in April 2026 while affirming its BBB+ rating, citing elevated risks to the country’s external and fiscal position. Fitch Ratings took a sharper turn, downgrading its outlook from “stable” to “negative” that same month — signaling a higher probability of a downgrade within one to two years — while keeping its BBB rating intact and citing rising growth risks. Moody’s has been the most stable of the three, retaining its Baa2 rating with a stable outlook through 2026, pointing to the country’s large, domestically driven economy and favorable demographics as support.
Officials have said the government’s medium-term goal is to reach a full “A” rating from at least one major agency by 2028, a target that will depend heavily on sustaining the fiscal consolidation and infrastructure execution improvements now being credited by ratings agencies across the board.
