Negative Fitch outlook not a downgrade signal – Palace

MANILA, Philippines — Fitch Ratings’ revised outlook for the Philippines does not mean that a downgrade is imminent, as the credit rating agency cited the government’s proactive response to external challenges, Malacañang said yesterday.

Fitch Ratings affirmed the country’s “BBB” investment-grade credit rating and revised the outlook from “stable” to “negative.”

“Fitch itself notes that a negative outlook does not mean that a downgrade is imminent,” Presidential Communications Undersecretary Claire Castro said in Filipino at a press briefing.

Castro said the Department of Finance noted that Fitch explicitly highlighted the government’s decisive and proactive response to global challenges, particularly the energy shock.

“Measures such as expanding the policy toolkit and implementing fuel-saving strategies demonstrate agile and responsible economic management, which continues to strengthen market confidence,” Castro said, quoting a statement from the DOF.

“Aside from that, the Philippines continues to enjoy strong access to global capital markets, supported by a diversified investor base and sustained demand for its Republic of the Philippines issuances. These are clear indicators of investors’ trust in the country’s long-term trajectory,” she said.

Eli Remolona, governor of the Bangko Sentral ng Pilipinas, said the economy remains in a good position “because growth is strong and banks are in good shape.”

A negative outlook underscores the need to address emerging risks affecting the country’s credit profile.