BSP WELCOMES JCR’S VIEW ON PH’S RESILIENCE TO EXTERNAL SHOCKS

The Bangko Sentral ng Pilipinas (BSP) welcomes Japan Credit Rating Agency’s (JCR) favorable assessment of the Philippines’ external position in its latest issuer report. 

BSP Governor Eli M. Remolona, Jr. said, “JCR’s recognition of the country’s strong external buffers reflects confidence in the Philippine economy’s ability to weather global headwinds, including those arising from the Middle East conflict.”

“The BSP will continue to manage the country’s foreign exchange reserves prudently to help safeguard economic stability,” he added.

In its latest issuer report, JCR cited the country’s resilience to external shocks, supported by accumulated foreign exchange reserves. The credit rating agency also noted that the country’s foreign currency liquidity position remains favorable despite heightened uncertainties arising from changes in U.S. tariff policies.

As of end-September 2026, the country’s foreign exchange reserves stood at US$99.5 billion. This was enough to cover 6.2 months’ worth of imports of goods and payments of services and primary income, well above the international benchmark of 3 months. The reserves were also 3.1 times the country’s short-term external debt based on residual maturity^[1].

The agency noted that steady remittances and solid BPO revenues continue to support the current account. Cash remittances from overseas Filipinos reached US$23.4 billion from January to August 2026, up 2.2% year-to-date, while BPO revenues rose to US$15.4 billion in the first half of 2026.

JCR also cited the stability of the financial system, noting continued growth in bank lending and strong capitalization. 

The favorable assessment complements JCR’s decision on 28 August 2026 to affirm the Philippines’ investment-grade credit rating of “A-” with a “stable” outlook.

An issuer report provides additional analysis and context behind a sovereign credit rating action.