BSP welcomes Moody’s strong Philippines outlook

FILE PHOTO: A sign for Moody's rating agency is displayed at the company headquarters in New York. (Photo by EMMANUEL DUNAND / AFP) Published on : 18 Apr 2026, 04:47 The Bangko Sentral ng Pilipinas (BSP) has welcomed Moody’s latest assessment affirming the strength of the country’s banking system and external position, saying it reinforces confidence in the Philippines’ financial stability. In a statement, BSP Governor Eli M. Remolona Jr. said the global ratings agency’s view aligns with the central bank’s own assessment. “We welcome Moody’s positive assessment. It confirms what we have been seeing: our banks are strong, and our external buffers are solid. At the BSP, we will continue to safeguard financial stability through sound regulations and prudent management of our international reserves,” Remolona said. In its credit opinion released on April 14, Moody’s described the Philippine banking system as “well capitalized, profitable, and competently managed,” citing the BSP’s adherence to global regulatory standards and proactive supervision as key pillars supporting stability. The central bank said the favorable assessment supports Moody’s decision to maintain the country’s “Baa2” investment-grade rating with a stable outlook, a level first affirmed in August 2024. An investment-grade rating signals low credit risk, helping the government access financing at lower costs. This, in turn, provides more fiscal space for infrastructure, social services, and other development priorities. However, the agency also flagged the country’s relatively low per capita income compared to regional peers, as well as “weak rule of law and control of corruption,” likely referring to issues such as the flood control infrastructure scandal, which weighed on economic growth last year. Moody’s—alongside S&P Global, as well as multilateral lenders like the World Bank and the International Monetary Fund—has also recently downgraded its growth forecast for the Philippines amid the ongoing Middle East conflict. In a separate report, Moody’s lowered its Philippine growth projections to 4.9 percent for 2026 and 5.3 percent for 2027, from 5.5 percent and 5.6 percent, respectively, citing rising global energy prices and external cost pressures. Meanwhile, S&P Global also revised its outlook on the Philippines from “positive” to “stable” in light of recent domestic and external economic headwinds. Follow Us