Moody’s cites 'ample' PH foreign reserves in latest assessment

Global credit watcher Moody’s Ratings has cited the Philippines’ strong foreign reserves level in its recent assessment of the country’s credit rating.

In its assessment, Moody’s said that “the [Philippine] government has strong access to domestic and international funding markets and ample foreign-currency reserves to weather global capital flows volatility.”

The credit watcher’s assessment, held on August 21, 2025, came a year after its affirmation of the Baa2 rating and stable outlook for the country in August 2024.

In a statement, the Bangko Sentral ng Pilipinas (BSP) welcomed Moody’s “favorable assessment.”

BSP data showed the country’s gross international reserves stood at $105.4 billion, equivalent to 7.2 months’ worth of imports and about 3.4 times the country’s short-term external debt based on residual maturity. 

“The Philippines has built ample reserves and policy space to absorb external shocks, allowing us to maintain stability even in times of global uncertainty,” said BSP Governor Eli Remolona Jr.

Moody’s said it expects the Philippines to maintain strong economic growth relative to regional and rating peers. 

Growth in the first half of 2025 averaged 5.4% year-on-year, on track with its real GDP growth forecast of 5.7% for 2025, which sits near the lower end of the government's target range of 5.5%–6.5%, according to the credit watcher.

The Philippines’ growth will be supported by resilient household consumption, stable remittance inflows from overseas workers, public investment spending, and ongoing structural reforms, Moody's said.

The BSP said the economy grew amid stable overseas Filipino (OF) remittances, with cash remittances reaching $16.75 billion in the first half of 2025, up 3.1% year-on-year.

The central bank said that an investment-grade rating indicates low credit risk, which helps lower borrowing costs, which in turn “allows the government to channel more resources toward socially beneficial programs and initiatives.”

Under Moody’s ratings scale, Baa2 is one notch above the minimum investment grade. —VBL, GMA Integrated News