Malacañang on Tuesday welcomed the back-to-back investment-grade credit ratings awarded to the Philippines by two major global agencies, describing the move as a testament to the international community’s sustained confidence in the country’s economic trajectory.
Executive Secretary Ralph Recto stated that the “stable” outlooks recently affirmed by Rating and Investment Information, Inc. (R&I) and Moody’s Ratings highlight strong investor trust in the Philippine economy and the governance of President Ferdinand R. Marcos Jr.
R&I affirmed the country’s ‘A−’ investment-grade rating with a stable outlook on August 21, while Moody’s followed on August 24 by affirming its ‘Baa2’ rating, also with a stable outlook.
Recto emphasized that securing high investment-grade ratings directly benefits both the government and local businesses by allowing them to borrow money on far more affordable and cost-effective terms.
“We will protect the confidence we have earned. More importantly, we will make that confidence work for the Filipino people through more jobs, higher incomes, better infrastructure, and stronger public services,” Recto said.
He noted that lower financing and borrowing costs for the government translate into savings that can be redirected toward critical public sectors, including classrooms, hospitals, roads, food security and social protection programs.
The credit rating affirmations coincide with recent economic data showing a significant decline in the nation’s poverty incidence, which dropped to 9.7 percent from 15.5 percent in 2023. According to official figures, this reduction lifted approximately 6.5 million Filipinos out of poverty, bringing the total number of poor individuals down to 11 million from a previous 17.5 million.
To maintain momentum, Recto affirmed that the administration remains dedicated to streamlining investment processes. Key initiatives being pushed include the CREATE MORE Act, Green Lanes for Strategic Investments, the Energy Virtual One-Stop Shop, the Retail Trade Liberalization Act, a rationalized fiscal regime for mining, the Capital Markets Efficiency Promotion Act and the Electric Vehicle Incentive Strategy Program.
Malacañang is also backing several consumer- and worker-focused reforms aimed at increasing domestic purchasing power. On tax relief, the administration is pursuing an increase in the personal income tax exemption threshold to P350,000 annually, which is expected to free up to P17,500 every year per worker into direct household purchasing power. To lower energy costs, amendments to the Electric Power Industry Reform Act (EPIRA) are being sought to bar distribution utilities and electric cooperatives from passing system loss charges on to ordinary consumers, alongside policy efforts to simplify rooftop solar and battery installations for households.
Looking ahead, Recto assured that the executive branch will continue working closely with Congress to ensure the timely passage of the proposed 2027 national budget. The priority remains improving budget execution and accelerating high-impact infrastructure projects to generate local employment, lower logistics costs and drive overall economic growth.