Finance Secretary Ralph Recto said on Monday that debt watcher Fitch Ratings' affirmation of the Philippines' "BBB" credit rating with a stable outlook is "a strong vote of confidence" that the country can sustain its growth momentum in the medium term.
Recto said, "This affirmation is highly encouraging as it shows a strong vote of confidence in our ability to grow the Philippine economy in a higher path over the medium term."
Last week, Fitch Ratings kept the Philippines' investment grade rating at "BBB" with a stable outlook after noting the country's robust medium-term growth potential and stable debt level.
The credit watchdog expects the Philippines' gross domestic product (GDP) to expand by 5.8% this year and to accelerate further to above 6% in the medium term.
According to Fitch, significant investments in infrastructure and reforms to foster trade and investment, including public-private partnerships (PPPs), will support the strong growth momentum.
It said the Marcos administration has continued to advance structural economic reforms to catalyze private investments.
Fitch also acknowledged the country's stable debt levels and strong macroeconomic policies.
A "BBB" rating, which is above the minimum investment grade, indicates a low expectation of default risk, with the country's capacity to meet financial commitments deemed adequate. A "stable" outlook suggests a low likelihood of a rating change over the next one to two years.
The Philippines has been rated "BBB" since December 2017.
"As I have said, any rating affirmation or upgrade is a major win for all Filipinos. This means that the Philippines can have more access to cheaper financing from global capital markets. A better credit rating will help us create more jobs and reduce poverty," Recto said.
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