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S&P upgrades Security Bank following Philippine banking sector review

S&P Global Ratings upgraded Security Bank Corp. and affirmed the ratings of Development Bank of the Philippines after revising its banking industry country risk assessment on the Philippines to group 6 from group 7.

The rating agency said it raised its long- and short-term issuer credit ratings on Security Bank to BBB- and A-3, respectively, from BB+ and B. The outlook is stable. Meanwhile, it affirmed its BBB long-term and A-2 short-term issuer credit ratings on Development Bank of the Philippines. The outlook remains positive.

The actions follow S&P's review of the Philippine banking sector and reflect its view that credit risk in the sector has reduced with the establishment of credit bureaus and banks' improving underwriting practices in the consumer loans segment.

S&P said Security Bank's upgrade reflects its expectations that reduced credit risk in the country's banking sector will boost the bank's capital position and provide a solid buffer against potential losses.

For Development Bank of the Philippines, S&P said the Philippine banking sector's improved credit financials will have a positive influence on the bank's creditworthiness. As a result, the rating agency revised its assessment of the bank's stand-alone credit profile to "bb" from "bb-."

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.