Manila: Fitch Ratings recently upgraded state-owned Land Bank of the Philippines' (LandBank) viability rating (VR), citing the bank's strong financial position. In a statement Thursday, LandBank said its VR was revised upward from 'bb' to 'bb+', reflecting its improved standalone financial strength.
According to Philippines News Agency, Fitch also reaffirmed the bank's long-term issuer default rating (IDR) at 'BBB'/Stable and Government Support Rating (GSR) at 'bbb', emphasizing its systemic importance, full state ownership, and continued strong government support. "This latest rating upgrade is a testament to LandBank's sound financial foundation and resilience," said LandBank President and Chief Executive Officer Lynette Ortiz.
LandBank's earnings and profitability assessment was also revised to 'bb'/positive from 'bb-'/stable, with Fitch citing expectations of improved core profitability as credit costs decline amid a resilient economy and falling interest rates. The bank expects capitalization to improve, supported by sustained growth.
As of end-2024, LandBank's Common Equity Tier-1 ratio was at 15.1 percent, well above the Bangko Sentral ng Pilipinas' minimum requirement of 10.25 percent. LandBank said this reflects strong capital buffers that support lending capacity.
