Landbank holds firm on sound fundamentals

Land Bank of the Philippines maintained that its fundamentals remain sound and stable despite the downgrade of its credit outlook to “negative.”

This came after Fitch Ratings revised the bank’s outlook, mirroring a similar downgrade in the Philippines’ sovereign credit outlook last week. This was due to the oil shock triggered by the Middle East war and the spillover from the major graft scandal last year.

According to Fitch, support ratings for state-owned banks are aligned with the sovereign, reflecting the government’s capacity and willingness to extend assistance.

“Landbank remains a strong and dependable partner of the government. Our investment-grade rating was affirmed because our fundamentals are sound, our governance is strong, and our mandate remains clear,” Landbank president and CEO Lynette Ortiz said.

“We will continue to support our clients, advance financial inclusion and contribute to countryside and national development,” she added.

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Still, Fitch affirmed Landbank’s “BBB” investment-grade rating and “bb+” viability rating.

For Landbank, the affirmation “reflects the Bank’s policy role, strong government support and stability in its financial, operational and governance fundamentals.”