Japan Credit Rating Agency Ltd. affirmed last week its ‘A-’ investment grade credit rating with stable outlook on Security Bank Corp., the eighth-largest private domestic universal bank in the Philippines.
The rating is at the same level as the Philippine sovereign rating.
JCR said in a statement the rating reflects Security Bank’s relatively robust domestic business base, high profitability and solid capital base. JCR also incorporated into the rating the synergy effects of Security Bank’s alliance with MUFG Bank.
“Security Bank’s financial durability stays strong as indicated by its high loan-loss provision coverage ratio and capital adequacy ratio in addition to its high profitability ensured by a high net interest margin,” JCR said.
The bank kept its provision coverage ratio high at 115 percent at the end of 2020. JCR also holds that Security Bank’s NPL ratio will continue to be controlled at a manageable level if the economy recovers steadily as the pandemic subsides because the bank has strengthened its credit management for individual borrowers.