Fitch: Philippines bonds BBB-

Fitch Ratings said it assigned an expected rating of BBB- to Philippines' forthcoming dollar-denominated global bonds due 2024.

The expected rating is in line with Philippines' long-term foreign-currency issuer default rating of BBB-. The sovereign also has a long-term local-currency issuer default rating of BBB and a stable outlook.

The sovereign external balance sheet is strong relative to peers, Fitch said. A persistent current account surplus, underpinned by remittance inflows, has led to the emergence of a net external creditor position in 2009, the agency said.

As a result, Philippine asset markets were less under pressure than some of its peers in the context of market expectations related to the U.S. central bank's unwinding of its quantitative easing program, Fitch said.

GDP growth has been strong and less volatile than many of its peers, as well, Fitch added.

While improvements in fiscal management have made general government debt dynamics more resilient to shocks, the low government revenues remain a weakness in the Philippines' credit profile, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.