By Ruth Abbey Gita-Carlos | Philippine News Agency
Malacañang on Tuesday clarified that Fitch Ratings’ decision to revise the Philippines’ credit outlook from “stable” to “negative” does not constitute a credit rating downgrade, stressing that the country remains on solid economic footing.
Palace Press Officer Claire Castro said the Department of Finance (DOF) has already explained that a negative outlook is not equivalent to an imminent downgrade and should instead be viewed as a cautionary signal rather than an immediate change in credit status.
Castro said Fitch itself noted that the outlook change does not immediately affect the country’s credit standing and highlighted the Philippine government’s policy response to external pressures.
“Fitch also explicitly highlighted the government’s decisive and proactive response to global challenges, particularly the energy shock,” she said, citing the DOF’s statement.
Castro said Fitch also recognized policy measures such as expanded economic tools and fuel-saving strategies as indicators of “agile and responsible economic management,” which help sustain market confidence.
She emphasized that these developments show that the country continues to enjoy strong investor confidence and resilient access to global capital markets.
She cited sustained demand for Philippine government securities and a diversified investor base.
“These are clear indicators of investors’ trust in the country’s long-term trajectory,” Castro said.
Fitch recently revised the Philippines’ outlook from stable to negative, citing rising risks from recent disruptions to public investment, exacerbated by the ongoing global energy shock.
Despite this, Fitch has affirmed the Philippines’ “BBB” investment-grade rating, which means moderate creditworthiness with some economic risks.
