Finance Secretary Ralph Recto on Monday said Fitch Ratings’ recent affirmation of the Philippines’ “BBB” credit rating with stable outlook, signals the country’s strong growth momentum in the medium term.

“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,” he said in a statement.

Fitch Ratings last week 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 debt watcher expects Philippine economic growth to hit 5.8 percent this year and to further accelerate to above 6 percent in the medium term.

According to Fitch, the strong growth momentum will be supported by large investments in infrastructure and reforms to foster trade and investment, including public-private partnerships (PPPs).

It said the Marcos administration has continued to advance structural economic reforms with the overarching goal of catalyzing 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, while 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 before, any rating affirmation or upgrade is a major win for all Filipinos as 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 the poverty rate,” Recto said. (PNA)