The Philippines has secured back-to-back credit rating affirmations from two major global rating agencies, reaffirming international confidence in the nation’s economic resilience, fiscal management and long-term growth prospects.
Japan-based Rating and Investment Information, Inc. (R&I) affirmed the country’s A− investment-grade rating with a stable outlook on August 21, maintaining the first A-level rating awarded to the Philippines under the Marcos Jr. administration.
Days later, on August 24, Moody’s Ratings followed suit, affirming the country’s Baa2 investment-grade rating, also with a stable outlook.
Executive Secretary Ralph G. Recto welcomed the announcements as a strong vote of confidence in the country’s macroeconomic direction, noting that investor trust in the economy and the administration remains firm. He emphasized that the government will protect this earned confidence and translate it into tangible benefits for Filipinos through job creation, higher incomes, better infrastructure and stronger public services.
High investment-grade ratings enable both the Philippine government and domestic businesses to secure international borrowing on more favorable, cost-effective terms. Lower financing costs preserve state resources, allowing funds to be directed toward critical public services such as healthcare, school construction, road infrastructure, food security and social protection programs.
In their respective assessments, Moody’s and R&I cited the Philippines’ strong industrial base, expanding infrastructure pipeline, sustained foreign direct investment, improving fiscal position, manageable external risks and a stable banking system. Both agencies also addressed recent domestic and global headwinds, concluding that they would not derail the country’s broader economic trajectory.
Regarding the flood control controversy highlighted by President Marcos Jr., R&I described the operational disruptions as temporary, noting that government safeguards and institutional reforms are expected to enhance governance and transparency over the long term. Similarly, Moody’s viewed recent contractions, alongside external pressures like elevated energy prices stemming from Middle East instability, as largely cyclical. Moody’s projected that recovery from the second half of 2026 should be led by a rebound in public investment as the government resumes stalled disbursements and normalizes spending execution.
The credit affirmations coincide with progress on domestic socio-economic indicators. Preliminary government figures show that poverty incidence dropped to 9.7 percent in 2025, down from 15.5 percent in 2023. The reduction lifted an estimated 6.5 million Filipinos out of poverty, bringing the total number of poor individuals down from 17.5 million to 11 million and achieving the administration’s single-digit poverty target three years ahead of its 2028 schedule.
To sustain this momentum, the administration is pursuing structural economic measures aimed at boosting purchasing power, reducing energy costs, and accelerating investment deployment. Among these priority measures is raising the individual personal income tax exemption threshold to PHP 350,000 annually, which frees up to PHP 17,500 per worker per year in disposable income.
On the energy front, the executive branch is urging Congress to amend the Electric Power Industry Reform Act (EPIRA) to prohibit distribution utilities and electric cooperatives from passing system loss charges to consumers, alongside advocating for the passage of the Sariling Kuryente Act to simplify residential solar and battery installations. Furthermore, investment facilitation will be enhanced by leveraging legislative frameworks such as the CREATE MORE Act, Green Lanes for Strategic Investments, the Energy Virtual One-Stop Shop, the Retail Trade Liberalization Act and the Capital Markets Efficiency Promotion Act to streamline business approvals.
Recto emphasized that the executive branch will continue working closely with Congress to ensure the timely passage of the proposed 2027 national budget, while focusing on improved budget execution and the rapid implementation of high-impact infrastructure projects across the country.