Japan Credit Rating Agency Ltd. (JCR) has affirmed the Philippines’ investment-grade “A-” credit rating with a stable outlook, pointing to the country’s strong economic fundamentals, resilience to external shocks, and ongoing progress in fiscal consolidation.
In its latest evaluation, JCR highlighted the country’s high and sustained medium-term growth potential, driven by robust domestic demand, a low level of external debt and strong foreign exchange reserves.
Although near-term growth has moderated, the Japanese debt watcher expects the Philippine economy to rebound in the second half of 2026 and return to higher growth rates over the medium term.
Finance Secretary Frederick D. Go welcomed the announcement, noting that the affirmation underscores investor confidence in the Marcos administration’s economic trajectory.
“JCR’s affirmation of the Philippines’ A- rating and Stable outlook reflects the resilience of our economy and the government’s commitment to fiscal consolidation and long-term reforms,” Go said. “It reinforces investor confidence and supports our efforts to attract investments, create quality jobs, and sustain inclusive growth.”
JCR highlighted key gains in fiscal management under the Marcos administration, particularly in narrowing the fiscal deficit-to-GDP ratio to 5.6 percent in 2025 from 5.7 percent in 2024. Total government debt stood at 63.2 percent of GDP at the end of 2025, a level JCR considers relatively low compared to peer sovereigns in the A-rating band.
The country’s robust external balance sheet also served as a major pillar supporting the credit decision.
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. praised the decision, noting that the rating reflects strong trust in the nation’s macroeconomic footing despite ongoing global volatility.
Remolona observed that the decision comes during a time of heightened global uncertainty, including geopolitical conflicts in the Middle East, underscoring the critical need for sound macroeconomic policies and productivity-enhancing reforms.
He added that the BSP will remain steadfast in maintaining price stability, safeguarding the banking system, and ensuring secure payment and settlement systems to support sustainable economic growth and broader opportunities for Filipinos.