Fitch rates Philippines bond BB

Fitch Ratings said it assigned the Republic of the Philippines' $750 million bond maturing in 2020 a rating of BB. The rating is in line with the Philippines' long-term foreign-currency issuer default rating of BB and stable outlook.

The sovereign ratings are supported by a modest gross external financing requirement and a good track record of fiscal consolidation beginning in 2003, although the current global recession is eroding both of these credit strengths, Fitch said.

Of greater concern from a sovereign credit perspective is the continued weak revenue performance of the Philippine government, implying an underlying structural fiscal weakness that needs to be addressed, the agency said.

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