Moody's upgraded United Coconut Planters Bank's ratings, including its long-term foreign currency deposit rating, due to an improvement in its solvency, as well as the rating agency's expectations that its internal capital generation will strengthen.
The rating agency said Jan. 17 that it upgraded the Philippine-based bank's long-term foreign currency deposit rating to Ba3 from B2, with a stable outlook. The bank's baseline credit assessment and adjusted BCA were raised to "b2" from "caa1." It also upgraded the bank's long-term counterparty risk ratings and assessments to Ba2 and Ba2(cr), respectively, from B1 and B1(cr).
At the same time, the rating agency affirmed the bank's short-term deposit rating and counterparty risk ratings at NP and short-term counterparty risk assessments at NP(cr).
Moody's said the upgrade was driven by United Coconut Planters Bank's improved solvency and its expectation that the bank's internal capital generation will strengthen. It noted that the bank's internal capital generation will increase substantially beginning in 2019 because 2018 marks the last year of amortization of the bank's 29 billion pesos in deferred credit charges from legacy bad assets.
As of Jan. 16, US$1 was equivalent to 52.25 Philippine pesos.