Fitch upgrades Philippines to coveted investment grade status

Sovereign rating upped to BBB-.

According to BBVA, Fitch is the first of the major rating agencies to upgrade the Philippines to coveted investment grade status. 

"The agency cited a persistent current account surplus and strong net external creditor position, the economy’s growth resilience over the past five years, and improvements in governance and fiscal management," the research firm reported.

BBVA further noted that the Philippine economy grew by 6.6% in 2012, surpassing neighbouring Indonesia’s 6.2%. For its part, Indonesia reached investment grade status in late 2011 and early 2012 by Fitch and Moody’s, although S&P has maintained its rating at one notch below investment grade.

"We expect the Philippines growth momentum to be sustained in 2013, supported by strong domestic demand, with overall growth of around 6.0% for the year," said BBVA.