President Marcos’ chief economic manager believes a credit rating upgrade is now within reach after the Philippines’ removal from the global money laundering "grey list."

Finance Secretary Ralph G. Recto stated that exiting the Financial Action Task Force's (FATF) grey list is a "significant step" towards achieving a higher credit rating.

The Philippines currently holds an investment-grade rating, but the government aims for an "A" rating before the Marcos administration's term ends in 2028.

Recto previously asserted that an "A" rating is attainable from any of the three major credit rating agencies: Moody's Ratings, Fitch Ratings, and S&P Global Ratings.

Currently, S&P has assigned the Philippines the highest rating, one notch below "A-," while Moody's and Fitch have given the country the minimum investment grade.

On Saturday, the FATF removed the Philippines from its grey list of countries under increased scrutiny.

"By upholding the highest standards of financial governance, we will attract more foreign direct investments and expand more trade partnerships that will help accelerate economic growth," Recto said.

"With this momentum, our next goal is clear—a credit rating upgrade within the Marcos Jr. administration," he added.

However, achieving an upgrade is more complex than it seem. Rating agencies typically adjust their outlook to "negative," "stable," or "positive" before taking rating action.

A "negative" outlook suggests a potential downgrade, "stable" indicates no change, and "positive" signals an impending upgrade.

While agencies sometimes upgrade without prior outlook adjustments, for the Philippines to reach "A-," Moody's and Fitch would need to upgrade the country's rating twice, and S&P once.

In November, S&P upgraded the Philippines’ credit outlook to 'positive,' indicating a growing likelihood of an upgrade to an 'A' rating.

This improvement, from the previous level below A-, moved the country closer to the prestigious 'A' tier.