by: Sarah Joson
Wednesday, May 11, 2016 |
Credit rating agency Fitch Ratings recently said the outcome of the 2016 Philippine elections will not have an instant effect on the nation’s stable outlook and minimum investment grade credit rating.
According to Sagarika Chandra, Associate Director of Fitch Ratings’ Sovereigns team, the Philippines’ economic fundamentals such as strong net external creditor position as well as declining general government debt and deficit levels continue to buoy the nation from external headwinds and risks. Moreover, the country was given a “BBB-“ rating with a positive outlook last April.
However, Chandra noted that the agency is closely watching if improvements and governance standards during the Aquino administration will be sustained and maintained by the new government. If that happens, it will have a positive effect on the ratings.
Other rating agencies such as Moody’s Investors Service gave the Philippines a Baa2 rating, then it was BBB with Standard & Poor’s, NICE Ratings, and R&I; and BBB+ with Japan Credit Rating Agency.
Fitch projects an average of 6% growth for the country’s gross domestic product (GDP) in 2016-2017, from the 5.9% in the last four years.
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