MANILA - Moody's Investors Service said passage of the first package of the comprehensive tax reform program (CTRP) would be 'credit positive' for the Philippines.

"The passage of the bill is credit positive because it will address the Philippines' weak revenue generation," said Christian de Guzman, senior credit officer for Sovereign Risk Group at Moody's.

The debt watcher has given the Philippines a credit rating of Baa2 or a notch above minimum investment grade on a stable outlook, but it also noted that the country still collects less revenue than most Baa-rated peers.

De Guzman said the tax reform package is crucial to keeping narrow fiscal deficits amid the government's ambitious infrastructure spending plan.

"The passage of the tax reform also demonstrates the capacity to implement reform amid the political controversies around the government's focus on security and the war on drugs," he added.