JAPANESE debt watcher Rating and Investment Information, Inc.’s (R&I) recent affirmation of the country’s investment-grade credit rating shows that credit rating agencies and investors remain confident in the Philippines, Finance Secretary Ralph Recto said.
“Isa itong tagumpay na dapat ipagdiwang ng bawat Pilipino. Dahil ibig sabihin nito, nananatiling mataas ang tiwala ng mga credit rating agencies at investors sa atin (This is a success that every Filipino should celebrate. Because it means that credit rating agencies and investors remain confident in us),” Recto said on August 21.
The Finance chief added: “Kaya mas dadami ang papasok na investments, mas maraming magandang trabaho ang malilikha, mas tataas ang kita, at mas maraming Pilipino ang maiaahon natin sa kahirapan (So more investments will come in, more good jobs will be created, income will increase, and we will be able to lift more Filipinos out of poverty).”
The R&I on August 20 affirmed the Philippines’ “A-” investment-grade rating with a stable outlook.
An ‘A-’ rating reflects strong macroeconomic stability and robust creditworthiness.
This translates to lower interest rates on borrowings of the national government and the private sector, and helps attract more foreign direct investments.
In reaffirming its rating, R&I cited that the Philippine economy continues to grow at a relatively high rate among major countries in Southeast Asia.
In the second quarter of 2025, the Philippines’ Gross Domestic Product growth of 5.5 percent outperformed its regional peers, including China (5.2 percent), Indonesia (5.1 percent), Malaysia (4.5 percent), Singapore (4.3 percent), and Thailand (2.8 percent).
R&I reaffirmed the Philippines’ steady fiscal consolidation, highlighting the government’s progress in reducing the fiscal deficit and improving debt metrics in line with its fiscal strategy. (PNA)
