Fitch downgrades PH outlook, stocks fall

The Philippine Stock Exchange Index (PSEi) fell over 100 points on Tuesday after Fitch Ratings downgraded the country's credit outlook from stable to negative.

Property stocks were the biggest losers, followed by holding firms and financials.

Fitch cited increasing risks to the credit profile due to the pandemic’s impact on policy-making and economic and fiscal outturns.

Despite efforts by economic managers to downplay the downgrade, investors remained concerned about the long-term implications of Fitch's decision.

The peso strengthened against the US dollar, closing at PHP50 compared to a day earlier when it reached PHP50.12.