MANILA, Philippines — Land Bank of the Philippines has affirmed that its fundamentals remain sound and stable, even after Fitch Ratings revised its credit outlook to "negative."
The downgrade, which mirrors a similar revision in the Philippines' sovereign credit outlook, was triggered by an oil shock from the Middle East conflict and spillover effects from a major graft scandal last year.
According to Fitch, the support ratings for state-owned banks are aligned with the sovereign, reflecting the government's capacity and willingness to provide assistance. Despite the outlook change, Fitch affirmed Landbank's "BBB" investment-grade rating and "bb+" viability rating.
"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," said Lynette Ortiz, Landbank president and CEO. "We will continue to support our clients, advance financial inclusion, and contribute to countryside and national development."
For Landbank, the affirmation underscores its policy role, strong government support, and stability in financial, operational, and governance fundamentals.