Moody’s issues updated credit ratings for Philippines, Sri Lanka, and Pakistan

sovereign credit ratings Moody’s Ratings foreign exchange reserves fiscal reforms macroeconomic stability

Moody’s Ratings has issued updated sovereign credit assessments for the Philippines, Sri Lanka, and Pakistan, reflecting varying degrees of economic stability and reform progress.

In the Philippines, Moody’s affirmed the country’s Baa2 investment-grade rating with a stable outlook. The agency cited robust economic fundamentals and the government’s commitment to fiscal consolidation, projecting the fiscal deficit will narrow to 3.9% of GDP by 2026. Economic reforms under the Marcos, Jr. administration are expected to drive future investment and productivity.

Sri Lanka’s credit rating was affirmed at Caa1 with a stable outlook. While fiscal reforms under an IMF program have improved revenue generation, the country faces a high debt burden, with debt projected at 95% of GDP in 2026. High interest costs and external vulnerabilities remain significant challenges.

Pakistan’s sovereign ratings were upgraded from Caa1 to B3 by Moody’s, also maintaining a stable outlook. This upgrade follows an increase in foreign exchange reserves to approximately $17 billion as of July 2026, providing a larger buffer against external shocks. The improvement is linked to lower borrowing costs and the implementation of an IMF-backed reform program.

Entities

International Monetary Fund · Moody’s Ratings · Pakistan · Philippines · Sri Lanka

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Sri Lanka’s government debt is projected to be 95% of GDP in 2026. lankanewsweb.net
[○ 1 SOURCE] Moody’s affirmed the Philippines’ Baa2 investment-grade credit rating with a stable outlook. logisticsnews.ph
[○ 1 SOURCE] Pakistan’s foreign exchange reserves reached approximately $17 billion at the end of July 2026. gulfnews.com
[○ 1 SOURCE] The Philippines’ fiscal deficit is expected to narrow to 3.9% of GDP in 2026. logisticsnews.ph
[○ 1 SOURCE] Pakistan’s external vulnerability indicator improved to 145% in 2026 from 230% in 2025. gulfnews.com
[○ 1 SOURCE] Moody’s affirmed Sri Lanka’s Caa1 foreign currency long-term issuer rating with a stable outlook. lankanewsweb.net
[○ 1 SOURCE] Moody’s upgraded Pakistan’s local and foreign currency sovereign ratings to B3 from Caa1. gulfnews.com

Sources

Moody’s affirms Philippines’ Baa2 credit rating with stable outlook [logisticsnews.ph]

20 days ago

Moody's Keeps Sri Lanka at Distressed Rating, Blocking Access to Global Capital Markets [www.lankanewspapers.com]

19 days ago

Moody’s affirms Sri Lanka Caa1 rating on reform progress - LNW Lanka News Web [lankanewsweb.net]

19 days ago

Pakistan’s Forex Reserves Hit $17 Billion as Moody’s Upgrades Rating to B3, Signalling Stronger Economic Resilience [gulfnews.com]

20 days ago