The Philippines faces moderate corporate asset risks compared to its Southeast Asian peers, with local banks showing resilience amid concentrated corporate exposures, according to Moody’s Ratings.
The credit watcher said Philippine banks’ exposure to corporates, which makes up 73% of total system loans, heightens vulnerability to large defaults, but stability is supported by a strong operating environment and moderate leverage levels.
Unlike Vietnam or Indonesia, Philippine firms generally maintain adequate debt-servicing capacity and limited foreign currency exposure.
Moody’s added that corporate non-performing loans in the country remain below systemwide averages, with sufficient provisions to absorb potential shocks.
It noted that recent Bangko Sentral ng Pilipinas rate cuts have helped ease financing costs and support credit quality across sectors.
Source: PhilNews24 | October 8, 2025
