Fitch affirms PH investment grade rating

 News
Apr 042017
 

Global leader Fitch Ratings has affirmed a rating with a positive outlook for the Philippines’ long term foreign and local currency Issuer Default Ratings (IDRs).

Philippine Stock Exchange

Philippine Stock Exchange [via Business World Online]

The Fitch Ratings grade of ‘BBB-’ with a Positive Outlook was also given to the country’s unsecured foreign and local currency bonds, along with an ‘F3’ rating.

‘F3’rating was also affirmed for the Philippines’ short term foreign and local currency IDRs.

Altogether the Country Ceiling was affirmed at’BBB’.

The credit rating and research group cited the key rating drivers for the Philippines as reflective of its “continued strong and consistent growth performance, a robust net external creditor position and government debt levels that are lower than the median of peers in the 'BBB' rating category.”

Fitch cited the following rating factors:

  • The Philippines' strong economic growth is a rating strength.
  • The Philippines in May 2016 elected Rodrigo Duterte as its new president.
  • The Philippines is a strong net external creditor.
  • The Philippine central bank's monetary and exchange rate policies are effective.
  • The government's debt remains below the 'BBB' median.

A rating within the 'BBB' category means that expectations of default risk are currently low and the capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.

A positive rating outlook, meanwhile, indicates an upward trend for a credit rating over a one-to two-year period. 

Fitch expects the economy to sustain its strong growth momentum, with GDP forecast to increase by 6.8% and 6.7% in 2017 and 2018, respectively. Fitch forecasts inflation to increase to 3.3% in 2017, up from 1.8% at end-2016, but remain within the central bank's target of 2%-4%.

 

The post Fitch affirms PH investment grade rating appeared first on Good News Pilipinas.

Related posts:

  1. PHL gets investment grade rating from Korean agency
  2. Moody’s Investors Service upgrades Philippines credit rating
  3. PH gets further credit rating upgrade from Standard & Poor’s
  4. Pinoy business sentiment at all-time high in April-June 2013

So little time left, still so much to do

 Economy
Jul 172013
 
So little time left, still so much to do

On his 4th State of the Nation address, President Benigno Aquino III will hark on some outstanding accomplishments that most past presidents have not been able to deliver. First off will be the upgrade in investment status by two major credit rating institutions, Fitch Ratings and Standard and Poor’s, and the recent hint by another agency, Moody’s Investors Service, that it may lift the country’s rating later this year. All these are cognizant of the upbeat tempo in the economy the past year as gleaned from the strong GDP reports, improved tax collections and the better fiscal condition of government, and returning optimism among foreign investors to park their money in the country. The legislative has nonetheless also contributed a significant share, largely by passing measures such as the sin tax law that have raised collections by and impressive 28.2 percent year-on-year compared to the 12.4 percent figure in 2012. There will be more upbeat statements that we can expect from P-Noy as he addresses his “new” and old colleagues in Congress, those who have been given the mandate to rule our legislature for at least the next three years. It’s a relief that the last May elections had delivered to the current presidency a political government on the local, Lower House and Senate levels that is supportive and looks favorably on P-Noy’s leadership. This augurs well for the final stretch of the President’s six-year term. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In truth, time will fly, Read More …

Moody’s to evaluate Phl economy in Q3

 Economy
Jun 132013
 
Moody’s to evaluate Phl economy in Q3

MANILA, Philippines – Moody’s Investors Service is due to evaluate the Philippines next quarter, but an upgrade to investment grade status is not hinged on that, officials said yesterday. “The schedule is still being fixed but most likely, it would take place in the third quarter,” Claro Fernandez, central bank investor relations chief, said in a phone interview. The New York-based debt watcher has refrained from raising the country’s credit rating to investment grade despite similar actions from rivals, Fitch Ratings and Standard & Poor’s (S&P) Ratings Services this year. Moody’s currently places the Philippines at Ba1, with a “stable” outlook, which indicates no possible rating movements in the near future since the last action was in October of last year. Fitch and S&P, meanwhile, rank the country at BBB-, the lowest investment grade, months after they had their diligence visits to the Philippines.  Fitch made its visit in March and S&P in April. Christian de Guzman, vice-president for Sovereign Ratings Group at Moody’s, said in an e-mail that yearly visits are “surveillance activities and are not a pre-requisite for a rating change.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Fernandez agreed, saying the government is consistently in touch with the rating agencies, sending them reports on Philippine economic developments. “We have been in constant communication with them. We send them reports so that even if they do not come here, they know what is happening,” Fernandez pointed out. “An upgrade is not dependent on the visit. It Read More …