Fitch Ratings on Tuesday reaffirmed the Philippines’ Long-Term Foreign-Currency Issuer Default Rating (IDR) at “BBB” with a Stable Outlook, citing the country’s stable economic performance and growth potential.
The ratings agency said the “BBB” rating reflects the Philippines’ strong medium-term growth outlook, which is expected to support gradual reductions in government debt, and the country’s sizable economy relative to its rating peers.
Fitch projects the Philippine economy to grow by 5.6% in 2025, with growth anticipated to accelerate to over 6% in the medium term.
The growth forecast reflects the benefits of infrastructure investments and structural reforms aimed at liberalizing the economy and fostering trade and investment, including through public-private partnerships.
Fitch noted that the Philippines’ domestic-focused economy helps limit its exposure to global trade tensions. The agency also highlighted the relatively low U.S. tariff imposed on Philippine exports in recent months, suggesting a potential advantage over regional peers.
On the fiscal front, Fitch expects the government’s budget deficit to narrow to 3.6% of GDP by 2026, driven by improved collection and better spending efficiency. It also highlighted the country’s success in in managing inflation.
The reaffirmed “BBB” rating indicates a low risk of default, with Fitch assessing the Philippines’ ability to meet financial obligations as adequate.
