Philippine Central Bank Chief Says Credit Rating Cut is Unlikely

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The Philippines' credit rating is unlikely to be downgraded because the country's debt, which has risen to 12 trillion pesos ($232 billion), remains manageable, central bank Governor Benjamin Diokno said.

The Southeast Asian nation's level of debt is sustainable, with economic growth expected to outpace an increase in borrowings, Diokno said in a statement Sunday. The debt-to-GDP ratio of 61% is also manageable, compared with other countries, he said.

“The likelihood that the Philippines' ratings will be downgraded by rating agencies is nil,” the central bank chief said. Fitch affirmed last month the country's debt rating at BBB, the second-lowest investment grade, with a negative outlook.

The Philippines is unlike other developing economies whose currencies could be affected should the U.S. Federal Reserve raise rates, Diokno said, adding that the exchange rate remains market-determined and international reserves are ample. The central bank expects the government to fully settle provisional advances by end-June, he said.

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