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S&P assigns ratings to Bank of the Philippine Islands

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S&P assigns ratings to Bank of the Philippine Islands

S&P Global Ratings assigned first-time ratings to Bank of the Philippine Islands.

The rating agency said Aug. 27 that it assigned the bank a long-term issuer credit rating of BBB+ and a short-term issuer credit rating of A-2. The outlook on the long-term rating is stable.

The ratings reflect Bank of the Philippine Islands' dominant market position, good competitive position and its strong capitalization, Ratings said. It added that it expects the lender's risk adjusted capital ratio to be 10% to 11% over the next two years, supported by by high profit retention and moderating loan growth.

The rating agency believes the bank will maintain its sound asset quality, underscoring its good underwriting practices and risk control. However, a minor deterioration in asset quality is likely as the lender grows its higher-yielding, but riskier, consumer and small and medium-sized enterprise portfolio, Ratings added.

The stable outlook on Bank of the Philippine Islands reflects the rating agency's view that the lender will maintain its dominant market position and strong capital buffers over the next two years.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.