MANILA — The Bangko Sentral ng Pilipinas (BSP) welcomed S&P Global Ratings’ affirmation of the country’s long-term “BBB+” and short-term “A-2” sovereign investment-grade credit ratings with a positive outlook.

S&P cited the Philippines’ above-average economic growth potential, strong external position, policy continuity, and investment climate reforms as reasons for maintaining the ratings.

“S&P’s rating decision confirms our view of the favorable long-term economic growth prospects,” BSP Governor Eli M. Remolona, Jr. said. The agency also highlighted the central bank’s track record of low inflation and history of independence.

While the country’s GDP growth eased to 4.0% in Q3 2025 from 5.5% in Q2, S&P described the slowdown as temporary. The agency projects 4.8% growth in 2025, rebounding to 5.7% in 2026 and 6.5% in both 2027 and 2028, noting that the Philippines’ long-term growth prospects remain above those of countries with similar ratings.

As of Q3 2025, the Philippines recorded an average Q1-Q3 growth of 5.0%, ranking behind Vietnam (7.9%), tied with Indonesia (5.0%), and ahead of Malaysia (4.7%), Singapore (4.3%), and Thailand (2.4%).

Governor Remolona added that the country is well-positioned against external risks, supported by USD 110.2 billion in gross international reserves as of end-October 2025, enough to cover 7.4 months of imports, more than twice the IMF benchmark.

Investment-grade ratings allow the government to borrow at lower interest rates, freeing resources for essential services and infrastructure, while also helping businesses access more affordable financing to support expansion and job creation.

A positive outlook indicates a possible rating upgrade within 24 months, which would further lower borrowing costs and boost investor confidence.