Palace: PH keeps investor trust remains strong despite Fitch outlook downgrade

The Philippines continues to retain investor confidence and access to global capital markets despite a recent shift in its credit outlook, Malacañang said.

Global debt watcher Fitch Ratings revised the country’s outlook on its investment-grade rating from “stable” to “negative,” citing risks tied to slowing public investments and the country’s exposure to the ongoing global energy shock.

The Palace clarified, however, that the revised outlook does not automatically signal an imminent downgrade.

Fitch explained that a “negative” outlook indicates a higher probability of a downgrade within one to two years if current risks persist or worsen.

The Department of Finance (DOF), however, emphasized that Fitch “also explicitly highlighted the government’s decisive and proactive response to global challenges particularly the energy shock.”

The DOF added that “measures such as expanding the policy toolkit and implementing fuel saving strategies demonstrate agile and responsible economic management which continues to strengthen market confidence.”

The DOF further noted that “aside from that, the Philippines continues to enjoy strong access to global capital markets supported by a diversified investor-based and sustained demand for its Republic of the Philippines issuances,” adding that these are “clear indicators of investors trust in the country’s long term trajectory.”

-Paraluman News