The Clark Depot of the North-South Commuter Railway is 81 percent complete as of Aug. 12, 2024, the Department of Transportation said. The depot will serve as the parking area of train sets and will house maintenance facilities and the management system of the NSCR. Lady Vicencio, ABS-CBN News

MANILA - Debt watcher S&P Global Ratings affirmed its investment grade rating on the Philippines and raised its outlook on the country to positive from stable.

The global debt watcher kept its 'BBB+/A-2' rating on the Philippines citing "effective policymaking" which it said "has delivered structural improvements to the country's credit metrics." It also noted that fiscal reforms have raised government revenue as a share of GDP and helped to fund public investment.

"Improved infrastructure and policy environment have helped to keep economic growth strong in much of the past decade. The country's external position remains a credit strength reflecting rising foreign exchange reserves and low external debt," S&P added.

The agency also mentioned the country's strong economic recovery in the last two years and ongoing reforms to support business and investing conditions.

"The ratings on the Philippines reflect the country's above-average economic growth potential. This strength underpins constructive development outcomes. The ratings also benefit from the country's strong external position," S&P said.

The Bangko Sentral ng Pilipinas welcomed S&P's announcement and said this indicated a possible upgrade to an “A-” rating within 24 months. The government has said that it aims to get an upgrade to the "A" credit rating from the major debt-watchers like S&P, Fitch Ratings and Moody's.

A higher credit rating lowers borrowing costs for the country and lets it access credit on more favorable terms, making it more attractive to investors.

“This reflects the work the government has done to improve the economic, fiscal, and monetary environment, enabling strong growth to continue,” said BSP Governor Eli Remolona.

Remolona said the Philippines has ample reserves to protect against global economic fluctuations. He said that the country’s $111 billion gross international reserves are enough to cover eight months’ worth of imports, "well above the three-month benchmark suggested by the International Monetary Fund."

Finance Secretary Ralph Recto S&P's announcement reaffirms the country's stable economic and political environment, and that the Philippines is on track to achieve a growth-enhancing fiscal consolidation.

“We have a comprehensive Road to A initiative to ensure that we secure more upgrades soon,” Recto said.