by Edielyn Mae Mangol, Reporter
The Bangko Sentral ng Pilipinas (BSP) recently welcomed the reaffirmation by Rating and Investment Information, Inc. (R&I), a Japanese credit rating agency, of the Philippines’ “A-” investment-grade credit rating with a stable outlook.
This endorsement reflects the country’s solid economic growth, low inflation, and strong external position, increasing investor confidence and economic stability.
Key factors behind the affirmation
R&I underscored the Philippines’ economic resilience as one of Southeast Asia’s fastest-growing economies, with a 5.4% GDP growth average in the first half of 2025. This growth is fueled by public and private investments, the thriving IT-BPM sector, and demographic advantages.
Inflation dipped to a near six-year low of 0.9% in July 2025, thanks to BSP’s diligent monetary policies. Moreover, government debt ratios are expected to decline steadily, and the banking sector remains stable, further supporting the rating.
Why this matters in the fintech landscape
For the Philippines’ burgeoning fintech sector, the stable investment-grade credit rating is crucial. It signals sound macroeconomic fundamentals and a secure financial environment that attract both domestic and foreign investments.
Fintech companies rely heavily on investor confidence for funding and expansion, and positive credit ratings help lower the cost of capital and increase access to international financial markets.
Moreover, this rating affirms the country’s stable banking and financial system, which fintech firms increasingly intersect with through embedded finance, digital payments, and digital lending. A robust and reliable financial system encourages innovation and fosters consumer trust in fintech solutions, accelerating digital financial inclusion.
The rating also supports government initiatives to enhance digital infrastructure and promote financial inclusion, essential for fintech growth.
As the BSP continues to push prudent regulatory frameworks and monetary policies, the fintech ecosystem benefits from a transparent and predictable environment conducive to innovation and sustainable growth.
Strategic outlook and future prospects
Finance Secretary Ralph G. Recto hailed the affirmation as a boost to investment inflows, job creation, and poverty reduction. Complementary affirmations from other top credit agencies like S&P, Fitch, and Japan Credit Rating Agency reinforce confidence in the Philippines’ growth narrative.
Despite global economic uncertainties, the Philippines is well-positioned to sustain growth driven by expanding infrastructure, manufacturing, strong consumption, and a sound fiscal and financial system. This positive outlook uniquely benefits the fintech sector by providing a stable base for innovation, funding, and market expansion.
For further details, please refer to the official BSP release here.
The affirmation of the Philippines’ credit rating highlights a pivotal moment in fostering a thriving fintech ecosystem buoyed by economic stability, fiscal prudence, and a secure financial environment — key ingredients for accelerating the nation’s digital finance transformation journey.
