THE country’s economic-growth story is still seen to be one of the most robust and resilient performances this year amid impending volatilities in the local and global front, an international credit watcher said.
In a recent research note, Fitch Ratings said the Philippines’s economic prospects remain an outlier in the region this year, along with that of the Chinese.
“We assess macroeconomic performance and policy management as a strength for only two sovereigns [China and the Philippines], and as a neutral factor for the others,” Fitch said in its outlook on emerging Asian sovereigns for this year.
Moreover, the country’s other indicators also show a good standing among its Asian peers. Fitch graded the Philippines’s public finances with a “neutral” status and a “stable” trend. Other similarly rated countries in public finances include Bangladesh, China, Indonesia and Thailand. India, Malaysia, Mongolia, Sri Lanka and Vietnam, meanwhile, were rated with a “weakness” status in public finances.
In terms of external finances, the Philippines was given a “strength” status with a “stable” trend. Other countries with a “strength” status in its external finances include Bangladesh, China, Malaysia and Thailand. India and Vietnam were given a “neutral” standing, while Mongolia and Sri Lanka were given a “weakness” status. Only Vietnam, meanwhile, was given a “positive” grade on its external finances trend.
On its structural issues, meanwhile, the Philippines was given a “weakness” status, but is seen to improve in the coming months, as Fitch indicated a “stable” structural issues trend for the year. Bangladesh, China, India, Indonesia, Malaysia and Thailand were also given a “weakness” status in their structural issues. Only Mongolia was given a “strength” status in its structural issues.
The Philippines is also seen to have a neutral or limited impact from the commodity price decline seen this year, along with Bangladesh.
The country is rated “BBB-” with a stable outlook.
Fitch Ratings is the only ratings agency among the three major credit watchers in the world that have not yet upgraded the Philippines to a notch above the minimum investment grade.
In May 2014 S&P gave the Philippines another credit-rating upgrade, making it two notches above junk status, or one notch above investment grade. Moody’s followed suit with a similar action in mid-December 2014.