The Japan Credit Rating Agency, Ltd. (JCR) has reaffirmed the Philippines’ investment-grade credit rating of “A-” with a stable outlook, recognizing the country’s sustained economic growth and strong external position.

In the first quarter of 2025, the Philippine economy expanded by 5.4 percent, supported by stable inflation, which averaged 2.0 percent from January to April, according to the Bangko Sentral ng Pilipinas (BSP).

“Despite increased uncertainty due to changes in U.S. tariff policies, the Philippines’ foreign exchange liquidity position remains solid,” JCR noted, adding that the economy is expected to maintain high resilience to external shocks, with GDP growth projected to remain in the upper 5% range this year.

BSP Governor Eli M. Remolona, Jr. welcomed the affirmation, saying it would help bolster Japanese investments in the country. “The BSP will continue to safeguard price and financial stability to boost the country’s resilience amid global headwinds,” he said.

JCR also cited the Philippines’ ample gross international reserves, which stood at US\$105.3 billion as of end-April 2025, enough to cover 7.3 months of imports and 3.6 times short-term external debt based on residual maturity.

The country’s commitment to fiscal consolidation under the Medium-Term Fiscal Framework further contributed to the positive rating.

This affirmation follows Fitch Ratings’ own reaffirmation of the Philippines’ ‘BBB’ credit rating with a stable outlook in April, citing sound monetary policy and easing inflation.

An investment-grade rating reflects low credit risk, helping the government secure favorable financing terms for key infrastructure and public service initiatives.