Fitch: No change for Philippine banks

Fitch Ratings said it said in a new report that Philippine banks may see some deterioration in their financial profiles in view of the challenging operating environment expected over the next 12 to 18 months.

Nonetheless, the agency said it is likely to maintain a majority of the banks' ratings as the banks, in general, already have low ratings. This is indicated in the Philippines' banking systemic risk indicator of D, which denotes a low intrinsic quality or strength of the banking system, as well as the banks' non-investment grade ratings of BB or lower, the agency said.

On a positive note, most local banks appear to have reasonable capital cushion to negotiate operating environment-related challenges, Fitch said.

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