Fitch affirms Philippines investment grade

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Fitch Ratings has affirmed the Philippines’ investment grade rating at BBB, a notch above the minimum grade, and maintained its stable outlook, citing the economy’s strong medium-term growth prospects.

Global debt watcher Fitch Ratings affirmed the Philippines’ investment grade rating, citing the country’s strong medium-term growth prospects.MANILA, Philippines —

Fitch also sees a gradual reduction in government debt-to-GDP ratio at 54 percent by 2025 from 60.2 percent in the first quarter, which further supports the country’s long-term foreign currency issuer default rating of BBB.“Droughts associated with the El Niño phenomenon are affecting agricultural production and electricity and water supply across parts of the country, while heavy rainfall expected during La Niña later this year poses risks to economic activity,” it said.

Headline inflation picked up to 3.9 percent in May from 3.8 percent in April. Year to date, inflation averaged 3.5 percent. This is still below the full-year 3.8-percent risk adjusted forecast of the Bangko Sentral ng Pilipinas . “Structural current account deficits are likely to persist in the medium-term, on strong domestic demand and the infrastructure build-out. We view the current account surpluses before 2019 as largely reflecting under-investment,” Fitch added.

Meanwhile, a “stable” outlook suggests a low likelihood of a rating change over the next one to two years.BDO, SM launch Kabayan Tuesday para sa overseas Filipino families with Piolo PascualThinking of smarter buys? Here are 6 tech recos you can score this 6.6 saleThe stock market capped off the week on a high note, posting slight gains to extend its winning streak to a third straight...

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