|
Wednesday, December 08, 2004
Fitch downgrades RP rating outlook to negative
RATINGS agency Fitch downgraded the Philippines’ rating outlook to negative from stable, but kept the long-term foreign currency rating unchanged.
The decision was made after trading closed at the Philippine Stock Exchange yesterday.
Still, concerns about the possible downgrade caused the Philippine composite index to slip marginally.
Fitch maintained the existing ratings—including the BB rating for the country’s long-term foreign currency debt—because of a number of factors that continue to buttress the country’s creditworthiness. These include the strong economic performance and current account surpluses that are supported by hefty remittances from overseas Filipino workers (OFW).
OFW remittances rose 22.6 percent in September to $735 million, bringing remittances in the first nine months of the year to $6.2 billion, 9.4 percent above the $5.7 billion recorded in the same period last year.
According to the Bangko Sentral ng Pilipinas, September was the fourth straight month that OFW remittances grew.
A downgrade will raise the borrowing costs of the country, because investors will think twice about lending to a country associated with increased risk. (AP/CTL)
(December 8, 2004 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
