JCR Affirms PH's A- Credit Rating, Stable Outlook

​The Japan Credit Rating Agency, Ltd. (JCR) has affirmed the Philippines’ investment-grade credit rating of “A-” with a “stable” outlook.

The rating action recognized the Philippines’ sustained economic growth. In Q1 2025, the country’s gross domestic product (GDP) expanded by 5.4 percent.

According to the Bangko Sentral ng Pilipinas (BSP), growth was attained amid stable prices. Inflation averaged 2.0 percent during the first four months of the year.

“Despite increased uncertainty due to changes in U.S. tariff policies, [the] Philippines’ foreign exchange liquidity position remains solid, and JCR expects the economy to retain high resilience to external shocks going forward,” JCR said.

It expects the country’s GDP growth to stay in the “upper 5% range” this year.

According to BSP Governor Eli M. Remolona, Jr., “JCR’s affirmation will support and strengthen investment from Japan, one of the Philippines’ most important partners. The BSP will continue to safeguard price and financial stability to boost the country’s resilience amid global headwinds.”

JCR also cited the country's strong external position and ample foreign exchange reserves as well as government efforts towards fiscal consolidation under the Medium-Term Fiscal Framework.

As of end-April 2025, the Philippines’ gross international reserves stood at US$105.3 billion, sufficient to cover 7.3 months of imports and 3.6 times short-term external debt based on residual maturity.

Fitch Ratings also affirmed its ‘BBB’ with a stable outlook for the Philippines in April 2025, citing easing inflation, sound monetary policy, and stable public debt as key factors.

An investment-grade rating signals low credit risk and favorable financing terms for critical public services and infrastructure.