Japan Credit Rating Agency (JCR) highlighted the sustainable economic growth and soundness of the Philippine banking system.
In its latest report Thursday, JCR noted that the country’s high and sustainable economic growth, supported by solid domestic demand, low-level external debt and resilience to external shocks, supported by accumulated foreign exchange reserves, and stable financial system as some of the key factors behind the Philippines’ sustained investment-grade credit rating.
“Through government-led infrastructure projects, the economy has maintained strong growth driven by solid private consumption and fixed capital formation. High growth is expected to be retained over the medium term,” JCR said.
“The Marcos Jr. administration is implementing a range of policies aimed at fiscal consolidation, infrastructure development, poverty reduction, and other objectives, with steady progress achieved so far,” it added.
In June, JCR affirmed the Philippines’ investment-grade credit rating of “A-” with a “stable” outlook.
An investment-grade rating reflects low credit risk, which helps lower borrowing costs.
This, in turn, allows the government to channel more resources toward socially beneficial programs and initiatives.
JCR cited strong loan growth, lower non-performing loans ratio, and capital adequacy ratios that are “well above” both Philippine and international standards.
Latest data showed that the capital adequacy ratio of universal and commercial banks stood at 16.5 percent on a consolidated basis.
The banks also maintained strong asset quality.
Non-performing loan ratio declined to 3.1 percent as of end-July 2025 from 3.6 percent in 2021.