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IS & P Global Ratings on On Thursday he confirmed PhilipThe investment grade credit rating of Pines’ positive outlook “notes that its growth prospects remain strong even with the fall of the illusion weighing on the economy this year.
In a statement, S&P said it maintained its long-term “BBB+” and short-term “A-2” ratings on the Philippines, as well as good idea.
The lower “BBB+” rating is a notch below the “A”-Level grade directed by the government, while the positive outlook means that the Philippines’ credit rating can be raised within 24 months if the development is financed.
“The slowdown in public infrastructure investment in the Philippines is weighing on high-growth countries in the near term. However, this is a short-term outlook and the economy is relatively strong,” said the credit watcher.
IS&P noted ongoing investigations into anomalous flood control projects and infrastructure freezes It works and reduces the use of Public Works, which is expected to increase the growth of the domestic product (GDP) this year.
“However, we believe that this will not derail the country’s long-term development, which remains healthy,” it said.
The Philippine economy expanded by 4% in the third quarter, its slowest pace in more than four years between the overthrow of the government and spending amid corruption scandals. This brought the nine-month GDP growth to 5%, below the Government’s target of 5.5-6.5%.
Allegations of widespread corruption in public sector projects have sparked anger and protests, as well as depressed investor and consumer confidence.
IS & P earlier this week adjusted its forecast for Philippine GDP growth to 4.8% from 5.6% in 2025. If achieved, economic growth can underpin the government’s target.
It also lowered its Philippine production to 5.7% in 2026 from 5.8%, and below the government’s target of 6-7%.
“Nevertheless, we think the growth in the Philippines will remain above the peer average at the same level of development, on a 10-year basis on a Per-Capita basis,” said P.
“The country has a diversified economy with a strong record of high and stable growth. This shows the strength of the supportive policy and the improvement of the investment climate.”
I&P said investment growth and strong public and private spending will boost the Philippine economy next year until 2028.
“Philippines Government has developed effective and prudent financial policies in the last ten years, in our opinion. Improvement in the Quality of Expenditures, Controlled Financial Damages, and the lower lower government, and the lower lower government, and the lower lower government, and the lower lower government, said the lower Government.
The Philippines first received a positive outlook from S & P in November 2024, where AFefadjusted the country’s credit ratings.
“The positive view of the ratio reflects our view that the Philippines will maintain its external strength and good growth rate, and financial performance will strengthen in the next 12-24 months,” said P.
The National Government intends to protect the “A” Credit, but Finance Secretary Ralph G. Recto Rectolor Toopruction Division is likely to remove their chances of getting credit improvement.
However, S&P said the Philippines’ credit rating could be raised if it narrows its current account deficit and budget deficit quickly in the next two years.
S & P can return its opinion back to “stable” if the country’s GDP continues to grow less than expected and if it maintains a wide current account that would weaken its external financial position.
The credit watchdog said the “BBB++” credit rating was affirmed as it saw the government clean its debt burden in half its fundraising efforts.
“The country’s external position remains balanced, although current account deficits in recent years have reduced net foreign assets,” it added.
S&P said the government’s fiscal position will also “tighten slightly as the economy stabilizes.”
It expects the country’s budget to shrink on average by around 3% of GDP over the next three years.
“The long-term outlook remains positive, reflecting our assessment of the Philippines for 12-24 months.
Meanwhile, Bangko Sentral ng Pilipinas (BSP) governor Eli M. Remolona, Jr. and Secretary of Finance Frederick D. Go was accepted by the AFefIrmation.
S&P’s rating decision confirms our view on long-term economic growth prospects,” Mr Remolona said in a statement.
He said the Philippines “remains well positioned against external risks,” supported by $110.2 billion in international reserves.
For his part, Mr Go said the government will continue to ensure that its policy decisions will support sustainable growth and long-term sustainability.
“Having a high credit rating will help the Filipinos because this means cheaper money for the government, and in fact, more resources for important public services. This supports our mission to improve the health of all Filipinos,” he said.
The Philippines holds investment grade ratings with other major credit watchers, with “BBB” from Fitch’s rating and “Baa2” from Moody’s rating.
