The Philippines is now rated investment grade by three major credit ratings agencies – a status that puts the tiny Asian state ahead of its peers and should help protect it from any further emerging-market volatility, analysts say.
Moody's on Thursday lifted the Philippine sovereign credit rating by one notch to Baa3, citing firm economic growth, improvements in the fiscal position and political stability.
(Read more: Emerging markets to shake up Fortune 500 list)
The decision follows similar upgrades by Fitch Ratings and Standard & Poor's earlier this year and comes at a time when recent volatility in emerging markets has cast a cloud over the credit ratings outlook for Asian neighbors such as India and Indonesia.
"From a strategic stand-point, the Philippines is well-placed to benefit from "leap-frogging" Indonesia, and implicitly India, on a relative ratings dynamics," analysts at Mizuho Corporate Bank said in a note.
(Read more: Emerging markets thrive amid US shutdown)
"For Indonesia, touted as the next emerging-market Asian nation to achieve all-around investment grade status, slipping behind the Philippines was emphatic; S&P lowered its sub-investment grade outlook from "positive" to "stable" in May," they said. Indonesia has an investment grade rating from Moody's and Fitch but not S&P.
Concerns about a downgrade to India's credit rating meanwhile resurfaced after the Indian rupee sank to a record low against the U.S. dollar in August, although the currency has rebounded since then.
(Read more: Is India moving closer to a ratings downgrade?)