Philippines keeps A- rating from JCR

Japan Credit Rating Agency (JCR) has reaffirmed the Philippines' A- credit rating with a stable outlook, citing the nation's low external debt and ample foreign exchange reserves. JCR affirmed the country's A- ratings for long-term borrowings in both foreign and local currencies, as well as six yen-denominated bond issues totaling 133.6 billion yen set to mature between 2027 and 2042.

The agency's assessment reflects the Philippines' strong economic growth driven by domestic demand, low external debt, and resilience to external shocks. However, JCR expects GDP growth to slow to the mid-three-percent range this year, a further slowdown from the 4.4-percent expansion in 2025. Growth slowed to 2.6 percent in the first half of the year due to sluggish public investment and weakening household consumption.

Inflation averaged five percent from January to July, driven by rising crude oil and food prices. JCR anticipates growth to rebound in the second half of the year as public infrastructure investment increases and government measures stabilize prices. The country's foreign exchange liquidity remains solid, even amid uncertainty from the Middle East conflict, supporting JCR's expectation of the economy's resilience to external shocks.

The Bangko Sentral ng Pilipinas welcomed JCR's affirmation, highlighting continued confidence in the country's sound fundamentals. The Department of Finance also noted the rating decision as a reflection of the economy's strong credit fundamentals and resilience to external shocks, as well as the government's capacity to gradually reduce its budget deficit and debt while pursuing development goals.