Fitch downgrades PH outlook to stable

Debt watcher Fitch Ratings has downgraded the Philippines' outlook to 'stable', reflecting the country's deteriorating macroeconomic and fiscal situation due to the COVID-19 pandemic.

While maintaining the country's investment grade credit rating at BBB, Fitch projects a contraction in the Philippine economy this year and an increase in the general government deficit by more than 3.5 percentage points of GDP.

Top economic officials from the Bangko Sentral ng Pilipinas (BSP), Department of Finance (DOF), and National Economic and Development Authority (NEDA) stated that despite challenges, the Philippines is well-positioned to mitigate the economic impact of the pandemic due to built-in buffers.