MANILA — The Bangko Sentral ng Pilipinas (Bangko Sentral ng Pilipinas) and the Department of Finance (Department of Finance) said the country continues to have strong economic fundamentals and sound fiscal position despite a revised outlook from Fitch Ratings.

The statement came after Fitch Ratings affirmed the Philippines’ “BBB” investment-grade credit rating but changed its outlook from “stable” to “negative.”

In a statement on Monday, the BSP said the revision reflects shifts in risk conditions amid global energy shocks.

An investment-grade rating indicates low credit risk and sustained access to affordable financing, which supports government spending on priority programs. However, a negative outlook signals emerging risks that may affect the country’s credit profile.

The BSP clarified that, based on Fitch’s definition, an outlook revision does not automatically mean a credit rating downgrade will follow.

“The economy remains in a good position because growth is strong and banks are in good shape. The BSP is closely monitoring the impact of higher oil prices and geopolitical developments, particularly the conflict in the Middle East, on inflation and the overall Philippine economy,” BSP Governor Eli Remolona Jr. said.

Remolona said recent inflationary pressures are largely driven by global supply shocks, adding that the central bank remains alert to possible spillover effects and risks of inflation expectations becoming unanchored. He also said the BSP is ready to respond in a “measured, timely, and data-driven manner.”

Finance Secretary Frederick Go, in a separate statement, said the outlook revision was influenced by geopolitical tensions in the Middle East.

“The affirmation of our rating reflects our strong economic fundamentals and sound fiscal position,” Go said.

“The Philippine economy remains on solid footing with a robust domestic market, stable financial system, and recognized reforms,” he added.

Fitch also cited the government’s response to the energy situation, including the declaration of a National Energy Emergency in March, as a factor in its assessment. It likewise pointed to the country’s track record of policy continuity and reforms that may help cushion medium-term risks.

The debt watcher noted that the Philippines maintains adequate foreign exchange reserves to manage external pressures.

As of end-March 2026, gross international reserves stood at USD106.6 billion, equivalent to seven months of imports and about 3.9 times short-term external debt based on residual maturity, according to data.