BSP welcomes Moody's positive assessment of PH external sector

The Bangko Sentral ng Pilipinas (BSP) welcomed the favorable assessment by credit rating agency Moody’s of the country’s access to external financing.

In its latest ratings review—a report that follows a rating action—Moody’s noted the country’s access to domestic and international funding markets as well as the “ample foreign-currency reserves.” These are seen to help the economy “weather global capital flows volatility.”
 
Moody’s assessment followed its affirmation of the Baa2 rating and stable outlook in August 2024.
 
As of end-July 2025, the country’s gross international reserves stood at US$105.4 billion, equivalent to 7.2 months’ worth of imports and about 3.4 times the country’s short-term external debt based on residual maturity.
 
BSP Governor Eli M. Remolona, Jr. said, “The Philippines has built ample reserves and policy space to absorb external shocks, allowing us to maintain stability even in times of global uncertainty.”
 
Moody’s also noted the country’s broader economic growth, which is higher compared with regional and rating peers. In the first half of 2025, gross domestic product expanded by 5.4 percent year-on-year. This is in line with Moody’s full-year forecast of 5.7 percent for 2025 and within the government’s target range of 5.5 to 6.5 percent.  
 
The economy grew amid stable overseas Filipino (OF) remittances. OF cash remittances reached US$16.75 billion in the first half of 2025, a 3.1 percent increase from the same period last year.
 
An investment-grade rating indicates low credit risk, which helps lower borrowing costs. This, in turn, allows the government to channel more resources toward socially beneficial programs and initiatives.