Debt watcher Fitch Ratings said it plans to withdraw by middle of November the ratings it gave in July to Security Bank Corp., the country’s sixth-largest lender, because of commercial reasons.
Fitch upgraded on July 18, 2016 the long-term issuer default rating of Security Bank to “BB+” or non-investment grade speculative from “BB,” along with China Banking Corp., Philippine National Bank, and Rizal Commercial Banking Corp. with a stable outlook, citing the Philippines’ robust economy and favorable operating environment. The bank’s viability rating and local-currency issuer default rating were also upgraded.
Fitch did not specify the “commercial reasons” that might cause the withdrawal of the ratings.
“Fitch Ratings plans to withdraw the ratings on Security Bank Corp. on or about 16 November 2016, which is approximately 30 days from the date of this commentary, for commercial reasons,” Fitch said.
“Fitch reserves the right in its sole discretion to withdraw or maintain any rating at any time for any reason it deems sufficient. Fitch believes that investors benefit from increased rating coverage by Fitch and is providing approximately 30 days’ notice to the market of the rating withdrawal of Security Bank Corporation,” it said.