Fitch monitors political developments in Philippines

ABS-CBN News

Posted at Dec 09 2016 11:04 AM

MANILA – Debt-watcher Fitch Ratings said Friday it was “monitoring” political developments in the Philippines, following the resignation of Vice President Leni Robredo from the Cabinet.

Fitch said in a report this week that political risks and sluggish global trade were among possible deterrents to growth in Asian economies, including the Philippines.

“These political developments are important and we are monitoring it,” Sagarika Chandra, associate director at Fitch Ratings Asia Pacific, told ANC’s “Market Edge with Cathy Yang” when asked about Robredo.

Robredo quit as housing secretary last Sunday due to policy differences with President Rodrigo Duterte and said she was ready to lead the political opposition.

Nonetheless, Fitch, which rates Philippine sovereign bonds at investment grade, said it was expecting “very strong growth” for the country due to strong fundamentals.

Chandra said the Philippines was also in a “slightly better position” to withstand a rate increase by the Federal Reserve due to its robust economy.