Philippines retains Moody’s Baa2 rating with stable outlook
Moody’s Ratings on Monday affirmed the Philippines’ Baa2 local and foreign currency issuer and senior unsecured ratings with a stable outlook.
Source: BusinessWorld Philippines · August 24, 2026 at 11:21 PM · AI-assisted report
Single-source
KUALA LUMPUR, 25 AUGUST 2026 —
Moody’s Ratings on Monday affirmed the Philippines’ Baa2 local and foreign currency issuer and senior unsecured ratings with a stable outlook.
Market Impact
The affirmation reflects Moody’s expectation that the Philippines’ fiscal metrics will stabilise over the next two years as economic growth recovers gradually and the government continues fiscal consolidation, according to a statement by the debt watcher.
Moody’s noted the country’s access to local and global financing markets and ample international reserves can cushion it against global capital-flow volatility. These buffers will temper the impact of weaker debt affordability, institutional weaknesses and low income levels, it said.
The stable outlook signals Moody’s does not expect a rating change in the next 12 to 18 months. Moody’s said the Philippines’ medium-term growth potential and strong credit fundamentals support the rating, though risks remain from a prolonged slowdown, pre-election spending pressures or slower reform momentum ahead of the 2028 vote.