MANILA – Philippine economic fundamentals remain strong and the country’s fiscal position is stable, the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DOF) said.
The statement followed Fitch Ratings’ decision to maintain the Philippines’ “BBB” investment-grade rating while changing its outlook from “stable” to “negative.”
The BSP said the revision reflects rising global risks, especially energy supply disruptions caused by geopolitical tensions.
It added that an investment-grade rating still means low credit risk and continued access to affordable borrowing, while a negative outlook only signals potential risks ahead.
BSP Governor Eli Remolona Jr. said the outlook change does not mean a downgrade is certain.
He said the economy remains solid due to strong growth and a stable banking system, but the central bank is monitoring inflation risks linked to higher global oil prices and tensions in the Middle East.
Remolona also said the BSP is ready to take appropriate and timely action if needed.
Finance Secretary Frederick Go said the outlook revision was driven mainly by external geopolitical shocks.
He said Fitch’s affirmation of the rating shows confidence in the country’s strong fundamentals and fiscal discipline.
Go added that the Philippine economy continues to benefit from a strong domestic market, a stable financial system, and ongoing reforms.
Fitch also noted government measures to address energy pressures, including the declaration of a National Energy Emergency in March.
The agency cited the country’s adequate foreign reserves. As of end-March 2026, gross international reserves reached USD 106.6 billion, equal to about seven months of imports and nearly four times short-term external debt.
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