Japan Credit Rating Agency, Ltd. (JCR) has affirmed the Philippines’ A- sovereign credit rating with a Stable outlook, becoming the latest international ratings firm to maintain its assessment of the Philippines amid domestic and external headwinds.

In its latest assessment, JCR said the Philippines retains high and sustained growth potential, supported by solid domestic demand, low external debt and substantial foreign exchange reserves. These factors, it said, underpin the country’s creditworthiness despite a challenging external environment.

The agency cited the country’s strong economic fundamentals, resilience to external shocks and continued progress in fiscal consolidation—similar to assessments by Moody’s Ratings and Rating and Investment Information, Inc., which likewise affirmed their respective credit ratings and Stable outlooks for the Philippines.

JCR cited the government’s fiscal consolidation efforts, noting that the deficit-to-GDP ratio narrowed to 5.6 percent in 2025 from 5.7 percent in 2024, while government debt stood at 63.2 percent of GDP at end-2025. The agency described the debt level as relatively low compared with sovereigns rated in the A range.

External debt remained manageable at 30.3 percent of GDP, while gross international reserves reached $110.8 billion, equivalent to more than seven months of imports. JCR said the country’s foreign exchange liquidity remains solid and expects the economy to maintain strong resilience against external shocks.

Finance Secretary Frederick Go and Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. both welcomed the affirmation in separate statements.

“JCR’s affirmation of the Philippines’ A- rating and Stable outlook reflects the resilience of our economy and the government’s commitment to fiscal consolidation and long-term reforms. It reinforces investor confidence and supports our efforts to attract investments, create quality jobs, and sustain inclusive growth,” Go said.

“This reflects continued confidence in the country's sound fundamentals amid external headwinds. JCR today affirmed the country’s A- rating with a Stable outlook. The rating action comes at a time of heightened uncertainty, including the Middle East conflict. It underscores the importance of maintaining sound policies and sustaining reforms that support investment and productivity,” Remolona said.

The agency also recognized reforms aimed at improving the investment climate and advancing industrial development, including the CREATE MORE Act and its implementing rules, as well as efforts to expand public-private partnerships to complement government infrastructure spending.

JCR further cited initiatives to promote high-value technology, develop domestic mineral resources and expand advanced manufacturing, particularly in semiconductors and electronic components.