The Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DOF) welcomed S&P Global Ratings’ latest assessment of the Philippines, which reaffirmed the country’s investment-grade long-term rating of BBB+ and short-term rating of A-2, both with a positive outlook.

“The BSP welcomes S&P Global Ratings (S&P)’s affirmation of the country’s long-term ‘BBB+’ and short-term ‘A-2’ sovereign investment-grade credit ratings with a positive outlook,” the central bank said Thursday, 27 November.

In its advisory, S&P said the Philippines maintains a BBB+ long-term rating — indicating adequate capacity to meet financial commitments but still vulnerable to adverse economic conditions — and an A-2 short-term rating, which reflects a “satisfactory” ability to meet obligations but one “somewhat susceptible” to economic shifts.

“S&P’s rating decision confirms our view of the favorable long-term economic growth prospects,” BSP Governor Eli M. Remolona Jr. said.

The DOF also praised S&P’s decision, saying the affirmation reflects strong macroeconomic fundamentals and the administration’s sustained commitment to fiscal consolidation.

“We welcome this development. We will ensure that every policy decision will support sustainable growth and long-term stability,” said DOF Secretary Frederick Go.

“Having a high credit rating will benefit Filipinos because this means cheaper financing for the government, and in effect, more resources for essential public services. This supports our goal of uplifting the life of every Filipino,” he added.

S&P also noted that the Philippine economy is on track to recover despite disruptions caused by ongoing corruption investigations.

“An ongoing probe into flood control projects has halted some infrastructure works in the Philippines. The resultant slowdown in public capital expenditure will dent GDP growth this year. However, we believe this will not derail the country's long-term growth trajectory, which remains healthy,” S&P said.

Remolona emphasized the country’s resilience to external shocks, 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 double the IMF adequacy benchmark.

The DOF highlighted that the unemployment rate averaged 4.1% in the first nine months of 2025, outperforming the Philippine Development Plan’s 4.8% to 5.1% target for the year. It also cited the recently passed CREATE MORE Act as a key driver expected to support foreign direct investments over the next two to three years.

According to the BSP, maintaining an investment-grade rating allows the government to borrow at lower interest rates — freeing resources for infrastructure and essential services — and helps businesses access more affordable financing for expansion and job creation.

The BSP added that S&P’s positive outlook signals the possibility of a credit rating upgrade within 24 months, which would further reduce borrowing costs and strengthen investor confidence. Meanwhile, the DOF said ongoing flood control investigations will “enhance transparency and accountability in public infrastructure projects,” ensuring that public spending translates to real economic growth.