Polls outcome no impact yet on PHL credit ratings

May 11, 2016 3:57 am 

By Joann Santiago

MANILA, May 10 (PNA) – – An official of Fitch Ratings on Wednesday said the Philippines’ credit rating is not expected to get immediate impact based on the results of May 9 national polls.

“The agency does not expect the outcome of the Philippines election to have any immediate impact on the rating or outlook,” Fitch Ratings’ Sovereign team Associate Director Sagarika Chandra said in a statement.

Chandra, on the other hand, cited that when Fitch affirmed its ‘BBB-‘ investment grade rating with positive outlook on the Philippines last April “the agency had pointed out that it would wait and see whether the improvement in governance standards achieved under the administration of (President Benigno) Aquino III can be sustained after the 2016 elections, in line with its rating sensitivities”

”If that were to occur it could be positive for ratings,” she said assuring the public that the debt rater “will monitor further developments closely.”

”Fitch, however, continues to view Philippines’ underlying economic fundamentals as a strength, given its strong net external creditor position, declining general government debt and deficit levels, and positive growth momentum,” she said.

Chandra said these factors are the key points “that drove the agency to reaffirm the rating at ‘BBB-‘ with a positive outlook, in April this year.”

Fitch first elevated the country to investment grade in 2013 due to improvement in governance standards, economic fundamentals and sustained economic growth.

It elevated its ratings on the country to another notch the following year on continued improvement of domestic fundamentals. (PNA)

/JSV/EDS

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