Fitch maintains Phl investment grade

Fitch maintains Phl investment grade

Chito Lozada
The Daily Tribune
08 June 2024

Global credit watchdog Fitch Ratings has affirmed the Philippines' investment grade rating at “BBB” with a stable outlook after noting the country's robust medium-term growth potential and a manageable debt level.

"The 'BBB' rating and stable outlook reflect the strong medium-term growth, which supports a gradual reduction in government debt/GDP (gross domestic product) over the medium term and the large size of the economy relative to 'BBB' peers," Fitch Ratings said in a report released late Friday.

Fitch Ratings expects the economy to grow at 5.8 percent this year from 5.5 percent in 2023.

"We forecast real GDP growth of above 6 percent over the medium term, considerably stronger than the 'BBB' median of 3 percent, supported by large investments in infrastructure and reforms to foster trade and investment, including public-private partnerships," Fitch said.