S&P sees room for Phl credit rating upgrade

The Philippines stands out as one of only three Asia-Pacific economies with a positive sovereign rating outlook for 2026, as improving fiscal and external balances strengthen the country's credit profile despite political and geopolitical headwinds, according to S&P Global Ratings.

- By KEISHA TA-ASAN

In its latest Asia-Pacific Sovereign Rating Trends report, S&P said it expects Philippine sovereign credit metrics to strengthen over the next two years.

"We see the Philippine sovereign credit metrics strengthening over the next one to two years. Over this period, we expect that narrowing fiscal and current account deficits could augment sovereign credit buffers sufficiently to better support a higher rating," it said.

The Philippines currently carries a BBB+ rating with a positive outlook, alongside Laos and the Cook Islands. All other sovereigns in the region have stable outlooks.