Business

Fitch keeps Philippine credit rating, cites tax reform a plus

Fitch Ratings stood pat on its assessment on the Philippine economy.

Fitch Ratings stood pat on its assessment on the Philippine economy.

The global debt watcher affirmed on Wednesday, July 18 its “BBB” rating with stable outlook on the Philippines, steady from their observations coming from an upgrade in December 2017.

“Strong macroeconomic performance remains a rating strength, notwithstanding overheating risks,” Fitch said in a statement, noting that growth is seen at 6.8 percent this year.

“The passage of tax package 1A signals the authorities’ commitment to reform.”

On the other hand, concerns on rising prices and lending growth kept the credit rater on the lookout for an overheating economy.

However, Fitch also flagged “weaker governance and business environment indicators” as a barrier to future upgrades.

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