Japan agency keeps 'A-' rating outlook for PH

MANILA, August 29 ------ Japan-based credit rating agency Rating and Investment Information, Inc. (R&I) has maintained its "A-" credit rating on the Philippines, with a stable outlook.

In a statement, R&I said it expects Philippine economic growth to continue on the back of infrastructure investment, foreign direct investment, and population growth. R&I noted that the Philippine economy grew at its slowest non-pandemic pace in 14 years in 2025, as it was swiped by a corruption scandal and climate change-fueled weather woes. "Remittances from overseas workers have remained stable despite ongoing tensions in the Middle East but rising energy prices have pushed up the cost of living, leaving private consumption somewhat subdued," the agency also said.

R&I said it is "highly likely" that economic growth in 2026 will fall below the previous year's level. The agency said, however, that it sees the disruption stemming from the series of corruption issues as temporary. "From 2027 onward, R&I expects economic growth to recover to the 5 percent range as budget execution returns to normal," the agency said.

The agency also said the Philippines' fiscal balance as a share of gross domestic product (GDP) has improved, and external debt remains manageable. Both the Bangko Sentral ng Pilipinas Department of Finance (DOF) have welcomed R&I's investment rating. "The BSP remains focused on bringing inflation closer to the 3.0 percent target. This helps protect the purchasing power of households and supports investment activity," the Central Bank said in a statement.

The DOF, meanwhile, said the rating boosts international investor confidence in the Philippines, helping the country’s efforts to attract high-value investments and sustain growth. "This reinforces confidence, supports access to better financing, and helps attract quality investments that create jobs and expand economic opportunities for Filipinos,” Secretary Frederick Go said.

Source: news.abs-cbn.com