SOLAR and wind energy projects will continue to drive the growth of Philippine renewable energy (RE) with additional capacity estimated at 6.8 gigawatts (GW) over the next 10 years, Fitch Solutions Country Risk and Industry Research estimated in a report. In a Nov. 18 report, Fitch Solutions said wind and solar capacity is expected to […]
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Fitch Ratings keeps ‘negative’ PHL outlook
FITCH RATINGS affirmed the Philippines’ investment grade rating and kept the “negative” outlook, amid concerns over the impact of rising interest rates, soaring inflation and slowing global demand on the economy’s recovery. Fitch on Thursday said it maintained the Philippines’ long-term foreign currency issuer default rating at “BBB,” as this “balances strong growth, external finances […]
Fitch Solutions raises 2022 PHL GDP forecast to 6.6%
FITCH SOLUTIONS Country Risk and Industry Research said it raised its 2022 gross domestic product (GDP) growth forecast for the Philippines to 6.6%, citing its better-than-expected economic performance in the first half. The full-year outlook factors in an expected growth slowdown in the second half due to headwinds in the global economy, Fitch Solutions said. […]
PHL banks’ operating environment stable as economy recovers
Philippine banks’ operating environment is seen to be stable due to receding virus risks, a better business outlook and the economy’s continued recovery, which could lead to stronger demand for loans, Fitch Ratings said on Wednesday. Fitch said in a report that the Philippine banking system’s operating environment score is now stable, up from negative […]
PHL banks’ ratings to see ‘medium impact’ from Russia-Ukraine war
PHILIPPINE BANKS’ credit ratings may see “medium impact” from the war in Ukraine as they already have a negative outlook, Fitch Ratings said. “Notably, there are a higher number of banks in India and the Philippines (‘3’) with Negative Outlooks, mirroring the sovereign,” Fitch said in a note on Tuesday. “As their issuer default […]
‘Modest’ deficit impact seen if support measures continue
THE narrowing of the fiscal deficit will likely be modest in the Philippines as the authorities keep propping up the economy while vaccination rates are low, Fitch Ratings said. Fitch projects fiscal deficits to narrow in nearly all Asia Pacific economies as they withdraw relief measures and as government revenue rises on improving domestic demand. […]
PHL consumer spending to pick up in 2022 – Fitch Solutions
The improving employment rate and consumer sentiment in the Philippines could back a projected 5.1% household spending growth next year, Fitch Solutions Country Risk and Industry Research said. In a report released on Friday, Fitch Solutions said consumer spending could grow by a total of P11.1 trillion in 2022, accelerating from the estimated 3.5% growth […]
Weaker fundamentals to affect peso’s strength
UNCERTAINTIES over the Philippine government’s management of the coronavirus pandemic and deteriorating economic fundamentals will threaten the peso’s strength, Fitch Solutions Country Risk & Industry Research said. “We expect the peso to remain vulnerable to coronavirus disease 2019 (COVID-19) outbreaks, given low vaccination rates and difficulties containing outbreaks,” it said in a note on Tuesday […]
Young, underbanked consumers seen as fintech’s main chance
THE FINTECH industry has room to grow in Southeast Asia, which is underbanked and has a large population of young people, Fitch Ratings said. In a note Tuesday, the ratings agency said over half of the 580 million combined population of the Philippines, Singapore, Indonesia, Malaysia, Thailand and Vietnam are under 35 years of age. […]
More FDI seen needed to plug current account deficit by 2022
THE CURRENT account deficit is likely to widen starting in 2022, pressing home the need for reforms to attract more foreign direct investment (FDI) rather than more transitory forms of inflows, Fitch Solutions Country Risk and Industry Research said. “Policymakers will have to manage the economy’s external financing needs over the long term, with a […]
Household spending seen rising 4% this year
CONSUMPTION is likely to recover with a 4% increase in household spending this year, although the consumer and retail sectors are only expected to return to pre-pandemic levels by 2022, Fitch Solutions Country Risk & Industry Research said. “This better outlook comes from expectations that there will be more jobs and better incomes, fewer quarantine […]
Digital banking sector to grow amid rise in online transactions
ONLINE TRANSACTIONS have climbed due to the coronavirus pandemic. — KATEMANGOSTAR /FREEPIK.COM THE RISE in online transactions has opened opportunities for digital banking as many Filipinos remain unbanked or underbanked, Fitch Solutions Country Risk & Industry Research said, although the country’s underdeveloped digital infrastructure may limit the sector’s growth. “The Philippines’ large unbanked population, one […]
Merger plan to affect LANDBANK’s profitability
LAND BANK of the Philippines’ (LANDBANK) proposed merger with the United Coconut Planters Bank (UCPB) may affect its financial profile and profitability in the near term, but the government’s support will be a safety net for the state-run lender, Fitch Ratings said. “UCPB has been under a long-drawn rehabilitation program because of its weak financial […]
Budget deficit to remain wide until 2022
THE GOVERNMENT is likely to run a wide fiscal deficit until 2022 as it supports the economy amid the coronavirus crisis, Fitch Solutions Country Risk & Industry Research said. “We see limited risks from running wide deficits in the near term given the economy’s need for demand and investment. However, longer-term pressures on public finances […]
Philippine banks’ NPL ratio may rise up to 5% by end-2021 – Fitch
The Philippine banking industry will likely see a rise in soured loans this year as many consumers struggle to settle their debts amid the crisis, Fitch Ratings said. The non-performing loan (NPL) ratio is expected to spike to 4.5-5% by end-2021 as more bad loans pile up in the first half, the debt watcher said […]