S&P drops Philippines view to negative

Standard & Poor's said it revised its outlook on the sovereign ratings for the Republic of the Philippines to negative from stable.

At the same time, the BB-/B foreign currency and BB+/B local currency ratings on the sovereign were affirmed.

The ratings on the Philippines' are constrained by high public sector debt and weak fiscal flexibility, stemming largely from a narrow tax base and inefficient public enterprises and heavy public sector reliance on foreign currency financing, the agency noted.

However, S&P said adequate external liquidity and a record of steady economic growth support the ratings.

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