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
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KUALA LUMPUR, 25 AUGUST 2026 —
KUALA LUMPUR, Aug 25 (Reuters) – Moody’s Ratings on Monday affirmed the Philippines’ Baa2 local and foreign currency issuer and senior unsecured ratings with a stable outlook, citing expectations of fiscal stabilization amid gradual economic recovery and continued fiscal consolidation efforts.
Market Impact
The debt watcher maintained its investment-grade rating for the Philippines, noting that a stable outlook indicates the rating is likely to remain unchanged over the next 12 to 18 months. Moody’s highlighted the country’s access to local and global financing markets, as well as ample international reserves, as buffers against global capital flow volatility.
“The ratings affirmation reflects our expectation that stabilization in the Philippines’ fiscal metrics over the next two years will be supported by a gradual recovery in economic growth from the current cyclical slowdown and the government’s continued commitment to fiscal consolidation,” Moody’s said in a statement.
Moody’s also acknowledged the Philippines’ medium-term growth potential and strong credit fundamentals, despite risks such as a persistent slowdown, pre-election spending pressures, or slower reform momentum ahead of the 2028 election. The country has held a Baa2 rating with a stable outlook from Moody’s since December 2014, when it was upgraded from Baa3 with a positive outlook.
The affirmation comes as Malaysia and other regional economies monitor credit rating developments in ASEAN.