As the Philippines carries on as having strong economic growth, sound political environment, and improving finances, credit rating agency Fitch Ratings has recently affirmed its outlook and investment grade score for the country.
Fitch Ratings gave the Philippines a BBB- investment grade score last March 2013, along with a stable outlook.
For this year, their decision to retain the investment grade and outlook is driven by the positive performance of the country, which includes improved government spending, stable consumer prices, and resilience against external volatilities.
Some of the factors that were seen to contribute to the continuous growth of the Philippine economy are the consistent flow of remittances, robust business process outsourcing (BPO) sector, and low interest rates.
Meanwhile, Fitch noted that challenges such as asset price bubbles and excessive inflation will be minimal. The country’s external finances helped protect it against the financial market volatility from the decrease in the US Federal Reserve’s stimulus program.
The current account surpluses of the Philippines likewise cushioned external impacts, resulting to a 7% GDP for its net external creditor position in 2013. Other counterparts received a -12 in the BBB range.