Debt rater Moody’s Investors Service has assigned a provisional medium investment grade or (P)Baa2 rating to Philippine National Bank’s (PNB) $1-billion medium-term note (MTN) program. Moody’s said the bank’s BCA rating was also supported by its relatively stable funding profile compared with other banks in the Philippines, with limited depositor concentration versus the same peers. PNB was the fifth-largest bank in the Philippine banking system, with 692 domestic branches and 1,243 automated teller machines, as of the end of 2017, it noted. The credit rater said the bank’s liquid assets — which represented 33 percent of its total tangible assets as of end-December 2017 — would provide support against downside risks. The debt watcher expects PNB’s interest income to improve as the bank expands lending to the higher-yielding small and medium enterprises and retail segments.

Source: Manila Times April 13, 2018 16:30 UTC