Debt watcher Moody’s Investors Service has affirmed the Philippines’ “Baa2” investment grade rating, which carries a stable outlook, but warned that rising inflation and charter change were downside risks to the economy.

“The Baa2 rating incorporates a number of very positive credit features, including the high economic strength derived from a large and fast-growing economy, as well as improving fiscal strength based on moderate government debt levels and gains in debt affordability,” Moody’s said on Friday.