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Stable debt ratio with revenue rise may lead to positive rating action: Fitch Ratings

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/04/28/20210128-makati-pedestrian-covid-md-9951.jpg"/><figcaption>Pedestrians cross the intersection of Makati Avenue and Gil Puyat Avenue in Makati City on January 28, 2021. <em>Mark Demayo, ABS-CBN News/File</em></figcaption></figure></div><p>MANILA - A stable debt ratio with an increase in revenue as well as public finances could lead to the country&#x27;s credit outlook upgrade from negative to positive, Fitch Ratings said Tuesday.</p><p>Fitch Ratings on Monday affirmed its BBB rating but it revised the outlook to negative from stable, which means the credit rating could be downgraded in the medium term.</p><p>However, the outlook can also improve given the right conditions, Fitch Ratings Director of Sovereigns for Asia Pacific Sagarika Chandra told ANC.</p><p>&quot;That’s going to come from the public finances, that’s important. If we find that there’s going to be a stabilization of debt ratios, which is matched by increase in revenue base, that’s a factor that could lead to a positive rating action,&quot; Chandra said.</p><p>Chandra said the revised outlook was due to &quot;eroding&quot; buffers and the uncertainty of the COVID-19 pandemic including the new variants.</p><p>&quot;Last year, we downgraded some countries...and that didn’t happen to the Philippines because, as I was saying, there were certain buffers they had going into the crisis and now we think those buffers have eroded,&quot; she said.</p><p>Economic managers have said the country&#x27;s strong fiscal position helped the country weather the COVID-19 pandemic, which had shuttered businesses, leading to job loss for millions. </p><p>Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the effect of the pandemic on the economy is <a href="https://news.abs-cbn.com/business/07/12/21/philippines-set-for-rebound-pandemic-impact-transitory-economic-managers" target="_blank">transitory</a>. Diokno on Monday said the country&#x27;s debt ratio was still in a sustainable level. </p><p>Debt watcher S&amp;P Global Ratings in May also affirmed the Philippines&#x27; investment-grade credit rating of BBB+ with a stable outlook. </p><p>Investment-grade ratings give countries access to lower-interest loans and other benefits.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/27/21/sp-global-ratings-affirms-philippines-investment-grade-bbb-rating">S&amp;P Global Ratings affirms Philippines&#x27; investment grade BBB+ rating</a></li>	<li><a href="https://news.abs-cbn.com/business/07/12/21/fitch-affirms-philippines-bbb-rating-but-revises-outlook-to-negative-from-stable">Fitch affirms Philippines BBB rating but revises outlook to negative from stable</a></li></ul><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1726002" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

<p>A stable debt ratio with an increase in revenue as well as public finances could lead to the country's credit outlook upgrade from negative to positive, Fitch Ratings said Tuesday.</p>

A stable debt ratio with an increase in revenue as well as public finances could lead to the country's credit outlook upgrade from negative to positive, Fitch Ratings said Tuesday.