{"id":254663,"date":"2020-05-13T05:08:44","date_gmt":"2020-05-13T09:08:44","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=254663"},"modified":"2020-05-13T05:08:44","modified_gmt":"2020-05-13T09:08:44","slug":"fitch-ratings-changes-outlook-rating-of-ph-banks","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2020\/05\/13\/fitch-ratings-changes-outlook-rating-of-ph-banks\/","title":{"rendered":"Fitch Ratings changes outlook, rating of PH banks"},"content":{"rendered":"
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In a report, the debt rater said the lockdown that is still in place in mainland Luzon until May 15 has weakened consumer demand and affected the financial capacity of individual and corporate borrowers. (File Photo<\/a>: Kelvin Servigon\/Flickr,<\/a> CC BY-NC-ND 2.0<\/a>)<\/figcaption><\/figure>\n
MANILA<\/strong>\u00a0\u2013 Fitch Ratings has revised the ratings and outlook of several Philippine banks as a result of the expected contraction of the domestic economy due to the coronavirus disease 2019 (Covid-19) pandemic.<\/div>\n
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In a report, the debt rater said the lockdown that is still in place in mainland Luzon until May 15 has weakened consumer demand and affected the financial capacity of individual and corporate borrowers.<\/div>\n
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Fitch said the lockdown has limited the movement of about 57 percent of the population and hurt about 73 percent of the gross domestic product (GDP), thus, it is expected to result in a 1-percent contraction of the country\u2019s output this year, the first recession since 1998.<\/div>\n
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It, however, forecast a growth rebound of about 7 percent next year.<\/div>\n
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With these factors, Fitch revised the operating environment rating for the Philippine banking sector from bbb- with a Stable outlook to bb+ with a Stable outlook.<\/div>\n
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As a result, it maintained its BB+ ratings on China Banking Corp. (Chinabank) but revised the outlook from Stable to Negative due to the economic impact of Covid-19.<\/div>\n
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Fitch also kept its BBB rating on the state-owned Land Bank of the Philippines but revised the outlook from Positive to Stable, similar to its decision on the economy\u2019s ratings outlook.<\/div>\n
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It, however, downgraded the bank\u2019s viability rating from bb+ to bb \u201cas we foresee risks building on the bank\u2019s stand-alone credit profile as a result of the pandemic.\u201d<\/div>\n
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Meanwhile, Fitch downgraded its rating on the Tan-led Philippine National Bank (PNB) from BB+ to BB \u201cas we expect the economic fallout as a result of the coronavirus outbreak to weigh significantly on the credit profile in the near to medium term.\u201d<\/div>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0\u2013 Fitch Ratings has revised the ratings and outlook of several Philippine banks as a result of the expected contraction …<\/p>\n","protected":false},"author":33,"featured_media":198203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-254663","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/254663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=254663"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/254663\/revisions"}],"predecessor-version":[{"id":254664,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/254663\/revisions\/254664"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/198203"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=254663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=254663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=254663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}