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Asia's frontier markets are pushing ahead with banking sector reforms that should ultimately improve weak regulatory frameworks and strengthen banks' buffers against shocks.She speaks on "Bloomberg Daybreak: Asia." Also on Bloomberg Radio: Strength in Fundamentals Good For U. Banks Fitch believes downside risks to macroeconomic stability have intensified owing to the widening in the current account deficit, more challenging global external financing environment, jump in inflation and the impact of the plunge in the exchange rate on the private sector, which has significant foreign currency-denominated debt.The Philippines' sovereign ratings balance a favourable growth outlook, government debt levels that are below peer medians, a net external creditor position and policies geared towards maintaining macrostability against lower income per capita and weaker governance and business environment indicators compared with its rating category peers.Infrastructure investment will continue to be a major pillar of China's urbanisation and economic development, although the central government's tighter financial policies to control leverage are likely to hamper near-term growth.Municipal infrastructure catering for the needs of a growing urban population such as urban transportation systems, water conservation and waste management will see a rising share of infrastructure investment.
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The escalating trade tensions between two of Indonesia's main trading partners, China and the US, should have a limited impact on rated Indonesian manufacturers in the short term, Fitch Ratings says.