Global credit watcher Moody’s Ratings has given the Philippines a vote of confidence, highlighting the country’s ample foreign reserves and strong access to both local and international funding markets.
In its latest review held on August 21, 2025, Moody’s said the country is well-positioned to weather global uncertainties, thanks to its healthy financial buffers. The assessment came a year after it affirmed the Philippines’ Baa2 investment grade rating with a stable outlook.
The Bangko Sentral ng Pilipinas (BSP) welcomed the recognition, calling it a reflection of the country’s economic resilience.
According to BSP data, the Philippines’ gross international reserves stood at $105.4 billion—enough to cover 7.2 months of imports and more than three times the country’s short-term external debt.
“The Philippines has built ample reserves and policy space to absorb external shocks, allowing us to maintain stability even in times of global uncertainty,” said BSP Governor Eli Remolona Jr.
Moody’s also noted that the Philippines continues to stand out in the region for its strong economic growth. In the first half of 2025, the economy expanded by 5.4% year-on-year, keeping it on track with the forecast of 5.7% growth for the year. Though near the lower end of the government’s target of 5.5%–6.5%, the pace remains among the strongest compared to peers.
The credit watcher credited the country’s momentum to:
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Resilient household consumption
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Stable overseas Filipino remittances
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Public investment spending
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Ongoing structural reforms
Remittances remain a vital driver. From January to June 2025, cash remittances hit $16.75 billion, up 3.1% year-on-year, providing steady support for families and the domestic economy.
The BSP emphasized that maintaining an investment-grade rating is crucial because it signals low credit risk, making it cheaper for the government to borrow money. In turn, this allows more funds to be channeled toward social programs and national development initiatives.
Moody’s Baa2 rating is just one notch above the minimum investment grade—yet its affirmation sends a clear message: the Philippines has the strength and stability to stand firm amid global economic challenges.
