BSP Hails Moody’s Confidence in PH External Strength, Stable Growth Outlook

Business | BANKING Posted on 2025-08-31 03:21:08

MANILA – The Bangko Sentral ng Pilipinas (BSP) welcomed the latest positive assessment from credit rating agency Moody’s, which highlighted the country’s strong access to external financing and resilient economic fundamentals.

In its recent ratings review—issued after affirming the Philippines’ Baa2 rating (moderate credit risk) with a stable outlook in August 2024—Moody’s cited the country’s reliable access to both domestic and international funding markets, alongside its ample foreign-currency reserves. These factors are expected to help the economy “weather global capital flows volatility.”

As of end-July 2025, the country’s gross international reserves stood at USD105.4 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.

“The Philippines has built ample reserves and policy space to absorb external shocks, allowing us to maintain stability even in times of global uncertainty,” BSP Governor Eli Remolona Jr. said in a statement Saturday.

Moody’s further highlighted the Philippines’ robust economic growth, which remains above regional and rating peers. The country’s gross domestic product (GDP) expanded by 5.4 percent year-on-year in the first half of 2025, aligned with Moody’s full-year forecast of 5.7 percent and within the government’s target range of 5.5 to 6.5 percent.

Growth was supported by resilient overseas Filipino remittances, which reached USD16.75 billion in the first half of 2025, up 3.1 percent compared to the same period last year.

An investment-grade rating reflects low credit risk, lowering borrowing costs for the government and enabling more resources to be directed toward socially beneficial programs and national development initiatives.

NPO News Team I PNA-PR

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