S&P Warns Trade Tensions May Undermine Asia-Pacific Credit Ratings

Asia-Pacific sovereign credit ratings may come under pressure from rising trade frictions and geopolitical instability, S&P Global Ratings has warned. While most regional economies retain investment-grade ratings from “BBB” to “BBB+,” those with current account deficits—such as the Philippines, India, and Indonesia—face heightened risk. The Philippines, currently rated “BBB+” with a positive outlook, could see its upgrade ambitions threatened amid global volatility. S&P cited US tariff actions, tensions in the South China Sea, and rising energy import costs as major concerns. The Philippines recently faced a 20% reciprocal tariff from the US, compounding external economic pressure.