Global debt watcher Fitch Ratings raised the credit scores of eight major universal and commercial banks in the Philippines, following the upgrade of the Philippines sovereign rating to “BBB” from “BBB-.”
Fitch upgraded the long-term issuer default ratings of government-run Development Bank of the Philippines and Land Bank of the Philippines to “BBB-“ from “BB+” with stable outlooks.
Fitch also revised upward the support rating floors of DBP, LandBank, Bank of the Philippine Islands, BDO Unibank, Inc., Metropolitan Bank & Trust Co., China Banking Corp., Rizal Commercial Banking Corp. and Philippine National Bank.
“The upgrades of the IDRs on DBP and LBP are driven by the upward revisions of their support rating floors. The SRF revisions stem from Fitch’s expectation of an improving sovereign fiscal profile, which was one of the factors underpinning the upgrade of the sovereign ratings,” it said.
It said this strengthening sovereign profile should enhance the state’s ability to provide extraordinary support to the banks, if needed.