S&P upgrades Security Bank to investment grade, affirms rating for DBP

S&P Global Ratings bumped up its credit ratings on Security Bank Corp., while affirming its ratings on Development Bank of the Philippines (DBP) following an upgrade on the Philippine banking industry’s credit risk assessment.
In a statement sent to reporters late Monday, the global debt placed Security Bank to investment grade as it upgraded the lender’s long-term issuer credit rating to the minimum investment grade of “BBB-” from “BB+,” with a “stable” outlook. The short-term credit rating was also notched up to”A-3″ from “B.”
Meanwhile, the credit rater affirmed DBP’s long-term credit rating to “BBB,” a notch above the minimum investment grade, and the short-term credit rating to “A-2.” The state-owned bank also maintained its “positive” outlook from S&P.
The rating action was done following S&P’s view that “credit risk in the Philippine banking sector has reduced with the establishment of credit bureaus and banks’ improving underwriting practices in the consumer loans segment.”
Due to this, the credit rater upgraded the Banking Industry Country Risk Assessment (BICRA) to group “6” from group “7.” — Karl Angelo N. Vidal