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Debt watcher Fitch Ratings on Monday updated the Philippines’ credit rating to ‘BBB’ from ‘BBB-‘ with a stable outlook, citing that the Duterte administration’s war against illegal drugs has yet to deter investors.
With the upgrade, Fitch’s rating on the Philippines is now at the same level as those of Moody’s Investors Service as well as Standard & Poor’s, at one notch above investment grade.
“Strong and consistent macroeconomic performance has continued, underpinned by sound policies that are supporting high and sustainable growth rates. Investor sentiment has also remained strong, which is evident from solid domestic demand and inflows of foreign direct investment,” Fitch said.
According to Fitch, “there is no evidence so far that incidents of violence associated with the administration’s campaign against the illegal drug trade have undermined investor confidence.”
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Fitch was also bullish about the administration’s ambitious “Build, Build, Build” infrastructure program, which it said would “support continued robust growth.”
“Fitch forecasts real GDP [gross domestic product] growth of 6.8 percent in 2018 and 2019, which would maintain the Philippines’ place among the fastest-growing economies in the Asia-Pacific region,” it said.
