JAPAN-based credit rating agency Rating and Investment Information, Inc. (R&I) has affirmed the Philippines’ A- investment-grade rating with a stable outlook, citing the nation’s resilient economic fundamentals, diversified industrial base, and improving fiscal trajectory.
The August 2026 rating action highlights international investor confidence in the Philippines’ economic management under President Ferdinand Marcos Jr. administration.
R&I pointed to strong demographic tailwinds, robust foreign direct investment, and sustained infrastructure development as key drivers of the country’s continued expansion relative to Southeast Asian peers.
Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go welcomed the affirmation, emphasizing its impact on the country’s broader economic strategy.
“R&I’s affirmation of the Philippines’ A- rating and Stable outlook recognizes the government’s fiscal consolidation efforts and the strength of our economic reforms,” Secretary Go said. “This reinforces confidence, supports access to better financing, and helps attract quality investments that create jobs and expand economic opportunities for Filipinos.”
The rating agency acknowledged temporary delays in public infrastructure spending but expects growth to accelerate as budget execution normalizes.
R&I noted that enhanced oversight, stricter planning, and improved transparency mechanisms will ultimately bolster governance across state-funded projects.
In its assessment, R&I praised the Philippines’ balanced industrial portfolio—which includes strong contributions from tourism, IT-BPM, and manufacturing, particularly in the semiconductor supply chain.
Furthermore, the agency highlighted the country’s manageable external debt and healthy foreign exchange reserves, which provide a reliable buffer against global market volatility.
On the fiscal front, R&I commended the government’s revenue mobilization initiatives, which aim to narrow the national government deficit while protecting priority funding for social services.
The agency projected the country’s public debt ratio to decline over the medium term, demonstrating effective fiscal discipline alongside sustained economic growth.
Moving forward, the administration plans to build on the A- rating by continuing to streamline spending efficiency, manage debt prudently, and implement structural reforms aimed at driving long-term, inclusive economic development.
