The Japan Credit Rating Agency, Ltd. (JCR) has affirmed the Philippines’ investment-grade credit rating of “A-” with a “stable” outlook.

The rating action recognized the Philippines’ sustained economic growth. In the first quarter, gross domestic product (GDP) expanded by 5.4 percent.

According to the Bangko Sentral ng Pilipinas (BSP), growth was attained amid stable prices. Inflation averaged 2 percent from January to April.

“Despite increased uncertainty due to changes in US tariff policies, [the] Philippines’ foreign exchange liquidity position remains solid, and JCR expects the economy to retain high resilience to external shocks going forward,” JCR said.

It expects the country’s GDP growth to stay in the “upper 5 percent range” this year.

According to BSP Governor Eli Remolona, Jr., “JCR’s affirmation will support and strengthen investment from Japan, one of the Philippines’ most important partners. The BSP will continue to safeguard price and financial stability to boost the country’s resilience amid global headwinds.”

JCR also cited the country's strong external position and ample foreign exchange reserves as well as government efforts towards fiscal consolidation under the Medium-Term Fiscal Framework.

As of end-April, the Philippines’ gross international reserves stood at $105.3 billion, sufficient to cover 7.3 months of imports and 3.6 times short-term external debt based on residual maturity.

An investment-grade rating signals low credit risk and favorable financing terms for critical public services and infrastructure. Bangko Sentral ng Pilipinas