FX.co ★ S&P Cuts Philippines Credit Outlook to Stable

On April 8, 2026, S&P Global Ratings revised the Philippines’ credit outlook to “stable” from “positive” while affirming its BBB+ sovereign credit rating. The agency cited heightened risks to the country’s external and fiscal positions stemming from the conflict in the Middle East. S&P emphasized that elevated energy prices are likely to widen the Philippines’ current account deficit this year and erode its net external asset buffers. The continued energy price shocks are also expected to further weaken economic activity and consumer sentiment, weighing on household spending in the first half of the year. Nonetheless, S&P anticipates a recovery in the second half, forecasting full-year GDP growth of 5.8%. Moody’s Investors Service currently rates the Philippines at Baa2 with a stable outlook.