Moody’s retains PH's Baa2 investment-grade rating

Global credit watcher Moody’s Ratings has kept the Philippines’ investment-grade rating at Baa2, the Department of Finance (DOF) said Tuesday.

In a statement, the DOF said, citing Moody’s latest assessment released on February 2, 2026, that the Philippines’ Baa2 rating is “supported by strong access to domestic and international funding markets, a stable banking system, and ample foreign currency reserves to cushion the impact of global market volatility.”

Under Moody’s ratings scale, Baa2 is one notch above the minimum investment grade.

An investment-grade rating signifies low sovereign risk, helping the country secure cheaper funding and redirect funds from interest payments to social programs and projects.

“Moody’s assessment affirms that the Philippines is on the right track. We will continue to uphold fiscal discipline, accelerate strategic investments, and fast-track reforms toward sustainable growth,” said Finance Secretary Frederick Go.

In Moody's assessment, the country’s growth momentum will be fueled by strong household consumption, overseas workers’ remittances, accelerated public investment, and ongoing structural reforms.

The credit watcher also took note of the government’s fiscal consolidation efforts, which it said “remains on track” as the fiscal deficit was aimed to be slashed from an estimated 5.6% of gross domestic product (GDP) in 2025 to 4.3% by 2028, “supported by reforms to improve revenue collection and spending efficiency.”

With this, the Finance Department said it would continue to advance fiscal reforms and strategic policy measures to achieve a credit rating upgrade for the Philippines, as Moody’s recommended “sustaining reforms that have strengthened the economy, noting that a steady flow of public and private investments could also help growth exceed expectations.” —VBL, GMA Integrated News