Slang. great; wonderful; terrific.

1960–65, Americanism; respelling of fat Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
phat (fæt)
slang terrific; superb
[C20: from Black slang, a corruption of fat]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

hip-hop slang, "great, excellent," 1992, originating perhaps in the late 1980s and meaning at first "sexiness in a woman." The word itself is presumably a variant of fat (q.v.) in one of its slang senses, with the kind of off-beat spelling preferred in street slang (cf. boyz).
The spelling is attested as far back as 1678, as an erroneous form of fat (a classical over-correction; see '-ph-). This spelling is said by some to be an acronym, but various versions are given: "pretty hot and tasty," or "pretty hips and thighs" among them. These, too may have been innovations given as explanations to women who felt insulted by the word.
Online Etymology Dictionary, © 2010 Douglas Harper
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