Debt watcher Fitch Ratings assigned an investment grade or “BBB” rating to Development Bank of the Philippines’ proposed US dollar senior unsecured notes, which will constitute direct, unconditional, unsubordinated, and unsecured obligations.
The bank was earlier rated by Fitch with an investment-grade score of “BBB” with a stable outlook.
Fitch said in a statement the senior unsecured instruments were rated at the same level as DBP’s long-term foreign-currency issuer default rating, in accordance with Fitch’s criteria.
“We expect a high probability of extraordinary state support for DBP, if needed, due to its strategic policy role, full state ownership, systemic importance as the second-largest state-owned bank in the Philippines with around 5-percent share of system assets, and the state’s ability to provide support as indicated in the sovereign rating of ‘BBB’/stable,” Fitch said.
DBP earlier said it was eyeing to increase its authorized capital from P35 billion to P100 billion to enable it to broaden credit assistance to priority sectors.