MANILA, Philippines — The Philippines’ hard-earned credit rating that the Duterte administration tried to protect by limiting pandemic spending is now at risk of being downgraded, as the health crisis is seen leaving deep economic scars. Global debt watcher Fitch Ratings on Monday downgraded its outlook on the Philippines from “stable” to “negative”. This means there are chances that the country’s credit rating — which Fitch kept at investment grade “BBB” — could be downgraded over the next 18 to 24 months. A downward revision of the credit rating would have serious repercussions on the Philippines. A "sustained rise" in government debt, as a share of the economy, could trigger a credit rating downgrade, it added.

Source: Philippine Star July 12, 2021 13:30 UTC