The Bangko Sentral ng Pilipinas (BSP) acknowledged S&P Global Ratings’ decision to affirm the Philippines’ long-term credit rating at BBB+ and short-term rating at A-2, with the outlook revised from “positive” to “stable” due to risks from the ongoing Middle East conflict.
BSP Governor Eli M. Remolona, Jr. emphasized that the central bank will continue to monitor both domestic and global developments to ensure policies safeguard price and financial stability amid challenging economic and geopolitical conditions.
Despite global headwinds, S&P highlighted the Philippines’ above-average economic growth, projecting GDP to expand by 5.8% in 2026 and around 6.2% from 2027 to 2029. The stable outlook reflects expectations of sustained growth and a narrowing fiscal deficit over the next two years, though external and fiscal risks remain elevated.
S&P also noted the country’s strong external position, citing gross international reserves of US$107.5 billion as of end-March 2026, equivalent to 7.1 months of imports and 3.9 times short-term external debt. The agency further recognized the BSP’s track record in keeping inflation manageable and the resilience of the domestic banking system, supported by stronger financial sector oversight.
An investment-grade rating signals low credit risk and allows the country to access funding at more affordable rates, enabling greater support for essential services and programs. A stable outlook means the rating is unlikely to change within the next two years.
