FOLLOWING Moody’s assessment which affirmed the Philippines’ resilience amid evolving domestic and global risks, the central bank said it remains committed to safeguarding price and financial stability, while prudently managing the country’s foreign exchange reserves.
In its Issuer In-Depth report, Moody’s Ratings gave the Bangko Sentral ng Pilipinas (BSP) an ‘a’ assessment on ‘monetary and macro policy effectiveness.’
‘The ‘a’ assessment reflects the credibility of the monetary policy framework, exchange-rate flexibility and effective banking sector oversight,’ the credit rating agency said.
Further, Moody’s Ratings said the BSP has ‘demonstrated its ability to respond to changing economic conditions, easing policy when inflationary pressures were subdued and tightening as higher energy prices increased inflation risks in 2026.’
These actions, the credit rating agency said, have helped keep inflation expectations ‘anchored’ despite a temporary rise in headline inflation.
Moody’s Ratings said exchange-rate flexibility and sizeable foreign-exchange reserves provide important buffers against external shocks, while a ‘well-capitalized and liquid banking system’ limits potential contingent liabilities to the government.
‘Further improvements in monetary transmission, financial surveillance and macroprudential policy implementation would strengthen an already robust policy framework,’ added the credit rating agency.
As such, BSP Governor Eli M. Remolona Jr. said in a statement on Friday: ‘Moody’s assessment affirms the Philippines’ resilience amid evolving domestic and global risks. The BSP remains committed to safeguarding price and financial stability, while prudently managing the country’s foreign exchange reserves.’
Moreover, the report noted that the country’s external position is supported by substantial foreign exchange reserves and sustained sources of external financing.
Meanwhile, overseas Filipino remittances, business process outsourcing sector receipts and foreign direct investments continue to support household consumption, economic growth and external resilience.
Moody’s Issuer In-Depth report provides a comprehensive assessment of an issuer’s credit profile, including its business and financial strengths, key credit drivers and risks, and factors that may influence future rating developments.
Unlike a Credit Opinion or Rating Action report, it offers a more detailed analytical perspective intended to give investors and market participants a deeper understanding of the issuer’s creditworthiness. It does not change the sovereign credit rating.
On August 24, 2026, Moody’s affirmed the Philippines’ investment-grade credit rating of Baa2 with a stable outlook.