Fitch Ratings has downgraded its credit outlook for the Philippines to negative from stable, citing the country's heavy dependence on imported oil amid the ongoing Middle East conflict and a slowdown in public infrastructure spending linked to a government procurement scandal. While the Philippines retains its "BBB" investment-grade rating, Fitch warned that a further rise in the country's debt-to-GDP ratio or a deterioration in foreign-currency reserves could trigger an outright downgrade within 18 to 24 months — a move that would raise government borrowing costs and weaken investor confidence. The Bangko Sentral ng Pilipinas (the country's central bank) said it remains vigilant and ready to respond to inflation pressures, while analysts urged the Marcos administration to rebuild credibility through efficient public investment and targeted rather than broad energy subsidies.