By Darryl John Esguerra | Philippine News Agency
Malacañang on Tuesday welcomed back-to-back investment-grade credit rating affirmations for the Philippines, saying the assessments reflect continued confidence in the country’s economic fundamentals despite near-term challenges.
Rating and Investment Information, Inc. (R&I) affirmed the Philippines’ A-rating with a stable outlook on Aug. 21, followed by Moody’s affirmation of the country’s Baa2 rating, also with a stable outlook on Monday.
Both ratings are investment grade, indicating that the agencies continue to view the Philippines as having a relatively strong capacity to meet its financial obligations.
Executive Secretary Ralph Recto described the twin affirmations as votes of confidence in the Philippine economy and the Marcos administration.
“Dalawang boto ito ng kumpiyansa sa Pilipinas,” he said in a statement.
“Patunay ito na nananatiling matatag ang tiwala ng investors sa ating ekonomiya at sa pamamahala ni Pangulong Ferdinand R. Marcos Jr.”
“We will protect the confidence we have earned. More importantly, we will make that confidence work for the Filipino people through more jobs, higher incomes, better infrastructure, and stronger public services,” he added.
Investment-grade assessments generally allow governments and companies to access financing at more favorable costs, potentially freeing up more government resources for public services and infrastructure.
R&I and Moody’s cited the country’s industrial base, infrastructure and foreign investments, improving fiscal position, manageable external risks, and stable banking system as among the factors supporting the ratings.
The agencies also viewed the recent controversy surrounding the government’s flood control program as a challenge that is unlikely to derail the country’s long-term growth prospects.
R&I characterized the disruption as temporary, while noting that government safeguards and reforms could strengthen governance and transparency.
Moody’s similarly viewed the recent economic slowdown, including the impact of higher energy prices linked to the Middle East conflict, as largely cyclical.
“The recovery from the second half of 2026 should be led by a rebound in public investment as the government resumes stalled disbursements and normalizes spending execution,” Moody’s said.
The Malacañang said the ratings come as the government reports progress in reducing poverty, with preliminary data showing poverty incidence falling to 9.7% in 2025 from 15.5% in 2023.
This translates to about 11 million Filipinos living below the poverty threshold in 2025, down from 17.5 million in 2023, according to the figures cited by the government.
Exec. Sec. Recto said the administration would seek to sustain the gains by attracting more job-generating investments, raising incomes, reducing household expenses, and protecting vulnerable families from economic shocks.
Among the measures being pursued are increasing the personal income tax exemption to P350,000 annually, which the government estimates could free up to P17,500 per year per worker.
The administration is also seeking amendments to the Electric Power Industry Reform Act to prevent distribution utilities and electric cooperatives from passing system loss charges to ordinary consumers.
It is likewise pushing for the proposed Sariling Kuryente Act, which seeks to simplify and reduce the cost of installing household solar and battery systems.
Exec. Sec. Recto said the government would continue measures aimed at keeping food, fuel, electricity, and other necessities affordable while providing targeted assistance to vulnerable sectors.
The Executive branch is also working with Congress to ensure the timely passage of the proposed 2027 national budget, improve budget execution, and accelerate major infrastructure projects.
The government expects these projects to generate jobs, stimulate local economies, reduce logistics costs, and attract more investments.
It also seeks to accelerate investment through such measures as the CREATE MORE Act, Green Lanes for Strategic Investments, and the Energy Virtual One-Stop Shop, as well as reforms involving retail trade, mining, capital markets, and electric vehicles.
