Debt watcher Fitch Ratings has affirmed the Philippines’ “BBB” investment grade rating, which carries a stable outlook, but warned of overheating risks to the economy.

“The Philippines’ sovereign ratings balance a favorable growth outlook, government debt levels that are below peer medians, a net external creditor position and policies geared towards maintaining macrostability against lower income per capita and weaker governance and business environment indicators compared with its rating category peers,” Fitch said on Wednesday.