The Philippines won a sovereign rating upgrade from S&P Global Ratings, just as the government is preparing to sell euro bonds.
The rating on the nation’s long-term, foreign currency-denominated debt was raised one level to BBB+, S&P Global said in a statement yesterday. The upgrade puts the Philippines on par with Thailand and Mexico, and ahead of Indonesia.
The Philippines’ strong growth outlook, solid government fiscal accounts and low public debt are among the key rating drivers, S&P said. The upgrade would boost President Rodrigo Duterte’s efforts to finance hundreds of billions of dollars of infrastructure to fire up an economy that’s already growing more than 6% a year.
“We may raise the ratings over the next two years if the government makes significant further achievements in its fiscal reform programme, or if the country’s external position improves,” S&P said.
Dollar-peso one-month non-deliverable contracts fell 0.6% to 51.94 as of 6:17pm in Manila yesterday, data compiled by Bloomberg shows 
The Philippine peso was only one of two gainers among Asian currencies in April, advancing more than 1%. 
The benchmark stock index rose 0.7% yesterday. Stocks and the spot currency markets closed before S&P’s announcement and will be shut today.
Philippine economic managers are in Europe for a week-long European roadshow, part of plans to diversify sources of funding, which also include yuan and yen sales.
The upgrade is “well deserved,” Bangko Sentral ng Pilipinas governor Benjamin Diokno said via a text message. “But we know that the job is not done. We will continue to work unceasingly until we get an A-rating.”
The governor last week said he expects gross domestic product growth of more than 6% in the first quarter, while seeing inflation easing below 3%. The central bank is due to review monetary policy on May 9.