Moody’s and S&P affirm credit ratings for Philippines and India

Moody’s Ratings has affirmed the Philippines’ Baa2 investment-grade credit rating with a stable outlook. The Department of Finance noted that the rating reflects the country’s financial resilience, supported by strong access to funding and sufficient foreign-currency reserves. Moody’s expects the fiscal deficit to narrow from 4.3% of GDP in 2024 to 3.9% in 2026, citing reforms such as the CREATE MORE Act and increased private sector participation in sectors like renewable energy.

Separately, S&P Global Ratings has retained India’s sovereign credit rating at ‘BBB/A-2’ with a stable outlook. While S&P expects India’s economic growth to moderate to approximately 6.6% this financial year due to energy prices and agricultural conditions, it projects an average annual expansion of around 7% over the next three years. The agency highlighted India’s diversified economy and stable institutions as strengths, though it noted challenges including high government debt and low per capita income.