Economic managers welcome Fitch affirmation of PH credit rating

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="http://sa.kapamilya.com/absnews/abscbnnews/media/2021/tvpatrol/01/11/diokno.jpg"/></figure></div><p>MANILA - The Bangko Sentral ng Pilipinas and the Department of Finance on Monday said they welcomed the affirmation by Fitch Ratings of the Philippines credit rating.</p><p>Fitch said it was keeping the Philippines <a href="https://news.abs-cbn.com/business/01/11/21/fitch-affirms-philippines-rating-expects-economic-activity-to-continue-to-recover">BBB rating with a stable outlook</a> citing modest government debt levels, &quot;robust&quot; external buffers and still-strong medium-term growth prospects.</p><p>The BSP said that by keeping its credit rating, the Philippines continues to stand out in the international financial community amid a wave of credit rating downgrades due to the impact of the COVID-19 pandemic on these economies.</p><p>&quot;We appreciate Fitch’s understanding of the Philippines&#x27; credit and macroeconomic direction amid the global pandemic we are all facing,” said BSP Governor Benjamin Diokno.</p><p>Diokno said the BSP was among the first central banks in the world to respond to the crisis with a policy rate cut as early as February last year.</p><p>“We deemed it important to signal to the market that we were ready to act swiftly and decisively to buoy market confidence, as well as to ensure sufficient liquidity and efficient functioning of the financial system,” the central bank chief added.</p><p>The BSP <a href="https://news.abs-cbn.com/business/12/17/20/bangko-sentral-keeps-rates-steady-as-expected">reduced interest rates</a> by a cumulative 200 basis points last year, and cut the reserve requirement ratio for banks by 200 basis points to 12 percent.</p><p>Finance Secretary Carlos Dominguez said Fitch’s affirmation showed that the country has remained credit and investment-worthy despite the effects of the COVID-19 pandemic.</p><p>Dominguez the Philippines has enough fiscal space to deal with the health and economic crises, and it remains committed to prudent fiscal and debt management.</p><p>“Moreover, the government is also working with Congress on the quick passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. This, and the Financial Institutions Strategic Transfer (FIST) bill, which has been passed by Congress, are meant to stimulate economic activity and speed up the country’s recovery from the pandemic-driven global growth slump,” the Finance chief added.</p><p>Economic managers expect the Philippine economy to have <a href="https://news.abs-cbn.com/business/12/03/20/economic-managers-see-gdp-shrinking-up-to-95-percent-this-year">contracted</a> 8.5 percent to 9.5 percent last year as the pandemic throttled domestic consumption and forced thousands of businesses to close down.</p><p>They expect growth to bounce back this year by 6.5 to 7.5 percent, and 8 to 10 percent in 2022.</p><figure class="op-interactive"><iframe src="https://www.youtube.com/embed/UdZVfxhBcEM?enablejsapi=1"></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>The Bangko Sentral ng Pilipinas and the Department of Finance on Monday said they welcomed the affirmation by Fitch Ratings of the Philippines credit rating.</p>

The Bangko Sentral ng Pilipinas and the Department of Finance on Monday said they welcomed the affirmation by Fitch Ratings of the Philippines credit rating.

Economic managers welcome Fitch affirmation of PH credit rating | ABS-CBN

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Economic managers welcome Fitch affirmation of PH credit rating

Economic managers welcome Fitch affirmation of PH credit rating

ABS-CBN News

Published Jan 11, 2021 03:26 PM PHT

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Economic managers hail Fitch keeping PH rates

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