BSP welcomes Moody’s positive assessment of PH external sector

The Bangko Sentral ng Pilipinas (BSP) has welcomed a positive assessment from credit rating agency Moody’s, which cited the Philippines’ strong external buffers and continued access to funding markets.

Moody’s latest review highlighted the country’s ability to tap domestic and international financing and pointed to its “ample foreign-currency reserves” as a key factor in weathering global financial market volatility. The report followed the agency’s August 2024 decision affirming the Philippines’ Baa2 rating, which indicates moderate credit risk, with a stable outlook.

As of end-July 2025, the Philippines’ gross international reserves stood at USD105.4 billion, equivalent to 7.2 months of import cover and about 3.4 times the country’s short-term external debt based on residual maturity.

“The Philippines has built ample reserves and policy space to absorb external shocks, allowing us to maintain stability even in times of global uncertainty,” BSP Governor Eli Remolona Jr. said in a statement on Saturday.

Moody’s also noted that the Philippines’ economic growth outpaces both regional and ratings peers. Gross domestic product expanded by 5.4 percent year-on-year in the first half of 2025, consistent with Moody’s full-year growth forecast of 5.7 percent and within the government’s target range of 5.5 to 6.5 percent.

The country’s performance has been supported by stable overseas Filipino remittances, which totaled USD16.75 billion in the first six months of 2025, a 3.1 percent increase from the same period last year.

Officials noted that maintaining an investment-grade rating allows the government to access financing at lower borrowing costs, enabling greater fiscal space for social and development programs.