S&P Global Ratings affirmed a stable outlook for the Philippines backed by a strong momentum for economic growth and a manageable debt.

The country received a BBB+ rating for the long-term outlook and an A-2 for the short term.

"The ratings on the Philippines reflect the country's above-average economic growth potential," S&P Global said.

The credit rater projects the Philippine economy to grow by 5.4 percent this year, faster than its 5.2 percent previous estimate.

S&P attributes the likely growth to tax reforms which have increased government revenue to 20.3 percent of GDP or gross domestic product in three consecutive years.

Consequently, the credit rater expects the Philippines to obtain a narrower fiscal deficit at 3.8 percent of GDP this year from 4.4 percent in 2022.

S&P also sees the government debt to decrease to 41 percent by 2026 from 45.2 percent in 2022.

"Ongoing reform on the business, investment, and tax fronts should benefit growth over the next three to four years," the credit rater said.

"We expect the Marcos administration to continue to adhere to the well-established medium-term fiscal framework that has delivered constructive development outcomes," S&P added.