MANILA, Philippines – Moody’s Ratings has affirmed the Philippines’ Baa2 investment-grade rating and maintained its stable outlook, holding the country’s credit standing steady even as it navigates rising global energy costs, and a temporary slowdown on public infrastructure spending.

The affirmation underscores the resilience of the Philippine economy’s underlying fundamentals, with Moody’s citing the country’s strong access to domestic and international funding markets and sufficient foreign-currency reserves to weather global capital flow volatility. The rating agency expects the Philippines’ fiscal metrics to stabilize over the next two years, supported by a gradual recovery in growth and the government’s continued commitment to fiscal consolidation.

“We welcome the stable outlook credit-rating affirmation, even as the world deals with real headwinds. Moody’s assessment confirms our strong macroeconomic fundamentals, and that the reforms we’ve put in place are working.” Finance Secretary Frederick D. Go said.

The rating agency recognized the impact of the administration’s economic reforms, including the CREATE MORE Act, liberalization of various sectors such as renewable energy, and greater private sector participation, as factors expected to increasingly translate into higher investment and productivity.

On fiscal management, Moody’s affirmed that consolidation remains broadly on track, with the fiscal deficit projected to narrow to 3.9% of GDP in 2026, from 4.3% in 2024. The agency also cited the Bureau of the Treasury’s proactive liability management — lengthening debt maturities and maintaining a predominantly fixed-rate, local-currency denominated portfolio — as continuing to protect the sovereign debt against high refinancing costs and interest-rate risks.

The Marcos, Jr. administration will continue to strengthen revenue mobilization, improve public spending efficiency, and advance reforms that support investment-led, inclusive growth.