THE Philippine financial system is unlikely to be shaken by the loan default of a bankrupt Korean-owned shipbuilder, a Fitch Group unit said, but warned of challenges moving forward due to slower economic growth.

'Our view at Fitch Solutions is that the loan default by the local shipbuilding unit of Korean conglomerate Hanjin, the biggest in the Philippines’ banking history, is not a systemic problem and is unlikely to threaten financial stability in the country in the near-term,' Fitch Solutions said in a report released on Tuesday.