The Philippines continues to enjoy strong access to global capital markets and investors' trust despite a downgrade in the country's credit outlook rating, Malacañang said.


Malacañang, however, stressed that it does not mean a downgrade is imminent. 

For Fitch, a "negative" outlook means there is a higher likelihood of a downgrade over a one- to two-year horizon if underlying risks persist or worsen.

It cited stalling public investments, compounded by vulnerability to the escalating impacts of the ongoing global energy shock, as factors prompting Fitch to revise the country's outlook rating.

The Department of Finance (DOF) also stressed that Fitch "also explicitly highlighted the government’s decisive and proactive response to global challenges particularly the energy shock."

It added that "measures such as expanding the policy toolkit and implementing fuel saving strategies demonstrate agile and responsible economic management which continues to strengthen market confidence."

"Aside from that, the Philippines continues to enjoy strong access to global capital markets supported by a diversified investor-based and sustained demand for its Republic of the Philippines issuances," the DOF said.

The agency pointed out that these are "clear indicators of investors trust in the country’s long term trajectory."