Moody's Investors Service has become the third major credit rating agency to upgrade the Philippines to investment grade, citing its robust economy, political stability and improved governance.
Moody's said on Thursday it raised the rating by one notch to Baa3 from Ba1. It also assigned a positive outlook to the rating.
Standard & Poor's and Fitch Ratings raised the country's credit rating earlier this year, reducing borrowing costs for the Philippines and local companies on the international market.
It is also a sign of confidence in President Benigno Aquino III's leadership.
Aquino has been aggressive in prosecuting corruption and promoting good governance at a time the Philippines is enjoying an economic bonanza.
The economy expanded 7.5 percent in the second quarter, making it one of Asia's fastest growing. - Sapa-AP