Fitch keeps Philippines' investment grade rating

Fitch Ratings on Wednesday affirmed the Philippines' investment grade sovereign credit rating at BBB-, as well as a positive outlook on the rating.

The positive rating outlook indicates an upward trend for a credit rating over a one-to-two-year period.

In its report, Fitch recognized the Philippines' strong growth momentum, robust net external creditor position and low and manageable debt levels as factors that support the Philippines' rating.

The Philippines grew by an average of 6.6 percent over the past five years, becoming one of the world's fastest growing economies. Sustained rapid growth happened alongside declining debt ratios and the implementation of a range of structural reforms, led by vital pieces of economic legislation, which have helped keep the country on a strong growth trajectory.

Fitch said it expects the Philippine economy to sustain its strong growth performance and forecasts gross domestic product to increase by 6.8 and 6.7 percent in 2017 and 2018, respectively.

Official targets for GDP are 6.5-7.5 percent in 2017 and 7.0-8.0 percent in the next two years.

Fitch also noted that there is broad policy continuity with the Duterte administration's adoption of a 10-point socio-economic plan.

It also recognized that political stability has been maintained despite the controversy associated with the campaign against illegal drugs.

But Fitch said it will "continue to monitor the impact of the president's campaign against drugs on economic performance, financing flexibility and capital flows." Endit