'Road to A' still possible - BSP chief

The Philippines remains on track toward securing an “A” credit mark despite Fitch Ratings’ downgrade of its outlook to negative, with the Bangko Sentral ng Pilipinas (BSP) governor saying the country’s fundamentals remain intact and risks are largely external.

- By KEISHA TA-ASAN

“The Road to A agenda is still very possible. It’s just more difficult right now, but when these things go away, then we should be on that path,” BSP Governor Eli Remolona Jr. told reporters.

Fitch Ratings recently affirmed the country's “BBB” investment-grade rating but revised the outlook to negative, citing rising risks from global energy shocks and external pressures.

Remolona emphasized that a negative outlook does not automatically lead to a rating downgrade.

“Usually, when there’s a negative outlook, the next step would be a rating action, either an upgrade or a downgrade. But in the last year or so, that hasn’t really been the case. There have been instances where the outlook changes but the rating does not follow,” he said.