Moody’s Ratings affirms the Philippines’ investment-grade sovereign credit rating at “Baa2” and keeps the outlook stable. The rating decision reflects Moody’s assessment of the country’s fiscal and economic outlook, while indicating that near-term performance could be tested by downside risks.
Moody’s says weaker economic growth could weigh on fiscal metrics and debt affordability, even as it points to the possibility of stabilization. It expects growth to be 3.6% in 2026 before rising to 5.3% in 2027, with the 2026 figure remaining below 2025’s 4.4% but still within the government’s revised 3.5% to 4.5% target range. Moody’s also flags deteriorating debt affordability and rising political uncertainty as potential pressures on the government’s fiscal consolidation efforts over the next two years.
Across the outlets, there is agreement on the affirmed rating level, the stable outlook, and the main risks Moody’s cites—particularly growth and fiscal/financing pressures. Differences are mainly in emphasis, with one source highlighting the growth forecast and its role in stabilizing fiscal metrics.
