Finance chief Go touts PH fiscal gains as Moody’s affirms debt rating

Insider Spotlight

• Finance Secretary Frederick Go welcomed Moody’s affirmation as validation of the Philippines’ strong macroeconomic fundamentals.
• Moody’s kept the country’s Baa2 investment-grade rating and stable outlook despite global energy pressures and slower infrastructure spending.
• Economic reforms, fiscal consolidation and proactive debt management are helping reinforce the Philippines’ credit profile.

Finance Secretary Frederick Go is casting Moody’s latest vote of confidence in the Philippines as evidence that the government’s economic reforms are delivering results despite a challenging global environment.

Moody’s Ratings affirmed the Philippines’ Baa2 investment-grade credit rating and maintained its stable outlook, citing the economy’s underlying resilience, strong access to funding markets and sufficient foreign-currency reserves.

Why it matters

The affirmation gives the Marcos administration another signal of confidence in its economic management as the country contends with rising global energy costs and a temporary slowdown in public infrastructure spending.

“We welcome the stable outlook credit-rating affirmation, even as the world deals with real headwinds. Moody's assessment confirms our strong macroeconomic fundamentals, and that the reforms we've put in place are working." Go said in a statement on the evening of Monday, Aug. 24, 2026.

Moody’s expects Philippine fiscal metrics to stabilize over the next two years, supported by a gradual growth recovery and the government’s continued commitment to fiscal consolidation.

Frederick Go

The Finance chief said the Moody's affirmed debt rating shows that the country's fiscal condition remains resilient. 

Reforms gaining traction

The rating agency recognized reforms under the administration, including the CREATE MORE Act, the liberalization of sectors such as renewable energy and greater private-sector participation. These measures are expected to increasingly translate into stronger investment and productivity.

Moody’s also sees fiscal consolidation remaining broadly on track, with the deficit projected to narrow to 3.9 percent of gross domestic product in 2026 from 4.3 percent in 2024.

The bigger picture

The Bureau of the Treasury’s proactive liability management also earned recognition. Lengthening debt maturities and maintaining a predominantly fixed-rate, local-currency-denominated debt portfolio are helping shield government finances from refinancing costs and interest-rate risks.

For Go, the affirmation strengthens the case that the Philippines can preserve investor confidence while pursuing investment-led growth. The administration said it will continue strengthening revenue mobilization, improving the efficiency of public spending and advancing reforms aimed at inclusive growth.

— Edited by Daxim L. Lucas