Japan Credit Rating Agency Affirms PH Stability, Cites Strong Growth and Banking System

Business | Finance Posted on 2025-09-18 20:52:53

MANILA – The Japan Credit Rating Agency (JCR) reaffirmed the Philippines’ investment-grade standing, underscoring the country’s robust economic growth and sound financial system.

In its latest assessment, JCR cited solid domestic demand, low external debt, ample foreign exchange reserves, and a resilient banking sector as key drivers of the nation’s stability. The Philippines currently holds an “A-” rating with a stable outlook, reflecting low credit risk and favorable borrowing conditions.

“Government-led infrastructure projects and strong private consumption continue to fuel growth. High growth is expected to be sustained over the medium term,” JCR noted.

The Marcos Jr. administration’s policies on fiscal consolidation, infrastructure, and poverty reduction were also recognized for supporting economic resilience.

JCR highlighted the Philippine banking system’s strength, pointing to loan growth, declining non-performing loans (3.1% as of July 2025), and a capital adequacy ratio of 16.5%, well above domestic and global standards.

The Bangko Sentral ng Pilipinas (BSP) welcomed the report, with Governor Eli Remolona Jr. stressing that the central bank’s policies ensure “robust capitalization and sound risk management” to maintain financial stability.

Additional strengths include easing inflation, which averaged 1.7% from January to August 2025, and gross international reserves of USD 105.9 billion, equivalent to 7.2 months of imports.

JCR said continued progress in employment, poverty reduction, infrastructure, and structural reforms could further enhance the country’s rating, while delays in fiscal reforms may pose risks.

NPO News Team | PNA-PR

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