The Central Bank of the Philippines welcomed Japanese credit rating agency Rating and Investment Information, Inc. (R&I)’s affirmation of the Philippines’ “A-” investment-grade sovereign rating with a “stable” outlook, citing continued support from growth, low inflation and a strong external position. R&I highlighted 5.7 percent growth in 2024 and an inflation rate that fell to 0.9 percent in July 2025, described as a six-year low. The agency assessed the impact of 19 percent US reciprocal tariffs as limited given the economy’s relatively low reliance on exports to the US, and pointed to a manageable current account deficit, external debt levels and sufficient foreign exchange reserves, alongside ongoing overseas Filipino remittance growth. Stability of the banking sector was also cited as a key rating driver, with BSP Governor Eli M. Remolona, Jr. linking the low-inflation environment to monetary policy and noting continued measures to support bank capitalization, risk management and governance. The BSP noted that R&I’s decision aligns with other recent credit rating actions, including S&P Global Ratings’ outlook revision to positive in November 2024 and affirmations in Q2 2025 by Japan Credit Rating Agency at “A-” and Fitch Ratings at “BBB”, both with “stable” outlooks.
Central Bank of the Philippines 2025-08-20
Central Bank of the Philippines welcomes R&I affirmation of the Philippines’ A- rating with stable outlook
The Central Bank of the Philippines welcomed Rating and Investment Information, Inc.'s affirmation of the Philippines' “A-” investment-grade sovereign rating with a “stable” outlook, supported by growth, low inflation, and a strong external position. R&I noted 5.7% growth in 2024 and a six-year low inflation rate of 0.9% in July 2025, with limited impact from US tariffs. The stability of the banking sector and alignment with other credit rating actions were highlighted.