Japan Credit Rating Agency affirms Philippines' A– credit rating
GMA Integrated News
06 June 2025
Japan Credit Rating Agency Ltd. (JCR) has affirmed its long-term issuer rating on the Philippines as it cited the country’s sustained economic growth.
However, the JCR said steps needed to be taken to address income disparity.
In a dispatch released on Thursday, JCR affirmed the Philippines’ foreign currency long-term issuer and local currency long-term issuer at “A-,” with a stable outlook. The Philippines first scored the rating in June 2020.
An “A” rating indicates the country has “high creditworthiness supported by a few excellent factors,” while a minus (–) indicates the relative standing within the rating category.
A higher credit rating is generally seen as more favorable, as this would entail lower borrowing costs for the country.
“The ratings mainly reflect the Philippines’ high and sustained economic growth supported by solid domestic demand, low-level external debt, and resilience to external shocks supported by accumulated foreign exchange reserves,” JCR said.
“However, reducing income disparity through rural development and infrastructure development remain important tasks to be addressed,” it added.
Philippine economic growth clocked in at 5.4% in the first quarter of 2025, the fastest in three quarters, but slower than the 5.9% growth in the first three months of 2024.
Government debt stood at a record P16.752 trillion as of end-April 2025, 0.41% higher than the P16.68-trillion debt stock as of end-March. Gross international reserves amounted to $104.6 billion as of end-April, down from $106.7 billion as of end-March.
“Despite increased uncertainty due to changes in US tariff policies, the Philippines’ foreign exchange liquidity position remains solid, and JCR expects the economy to retain high resilience to external shocks going forward,” it added.
JCR’s affirmation of the Philippines’ issuer rating was welcomed by Finance Secretary Ralph Recto, who said this reflects the continued confidence of rating agencies and investors in the country.
“We remain committed to securing more ‘A’ ratings by staying faithful to our fiscal consolidation plan and Road-to-A strategy,” Recto said in a separate statement.
“We have already passed key game-changing reforms, such as the CREATE MORE Act and the Capital Markets Efficiency Promotion Act, and will continue to work on creating an investment-enabling environment to increase the country’s economic growth potential,” he added. –NB, GMA Integrated News
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