Amid ‘negative’ Fitch rating, Palace says investors’ confidence is strong

Fitch Ratings has revised its outlook for the Philippines from “stable” to “negative.”

According to a report in “24 Oras” on Tuesday, Fitch said the war in the Middle East significantly affected the Philippines due to its dependence on energy imports and the possible weakening of remittances.

However, Fitch still expects the country’s medium-term growth to remain strong.

The Philippines’ gross domestic product (GDP) or the total value of products and services, is estimated to grow by 4.6% this year. 

Meanwhile, the Philippines' credit rating remains at “BBB” or “Good Credit Quality,” reflecting its capacity to settle its debts. 

For its part, Malacañang is confident that investors continue to trust the Philippines. 

“Ito po ang sinasabi ng DOF, ang negative outlook (This is what the DOF said, the negative outlook), it does not mean a downgrade is imminent. Fitch also explicitly highlighted the government’s decisive and proactive response to global challenges, particularly the energy shock,” said Palace Press Officer Claire Castro. 

On the other hand, the Bangko Sentral ng Pilipinas (BSP) said the country’s economy remains in a good position. 

“The economy remains in a good position because growth is strong and banks are in good shape. The BSP is closely monitoring the impact of higher oil prices and geopolitical developments, particularly the conflict in the Middle East, on inflation and the overall Philippine economy,” said BSP Governor Eli M. Remolona, Jr. — Vince Angelo Ferreras/JMA, GMA News