FITCH Ratings recently upgraded the state-owned Land Bank of the Philippines’ (LandBank) viability rating (VR), citing the bank’s strong financial position.
In a statement Thursday, March 13, 2025, LandBank said its VR was revised upward from ‘bb’ to ‘bb+’, reflecting its improved standalone financial strength.
Fitch also reaffirmed the bank’s long-term issuer default rating (IDR) at ‘BBB’/Stable and Government Support Rating (GSR) at ‘BBB’, emphasizing its systemic importance, full state ownership, and continued strong
government support.
“This latest rating upgrade is a testament to LandBank’s sound financial foundation and resilience,” said LandBank president and chief executive officer Lynette Ortiz.
“With a solid capital base and an improving profitability outlook, we are well-positioned to drive stronger financial performance while deepening our commitment to agriculture and other key economic sectors that fuel national growth,” she added.
LandBank said its earnings and profitability assessment was also revised to ‘bb’/positive from ‘bb-’/stable, with Fitch citing expectations of improved core profitability as credit costs decline amid a resilient economy and falling interest rates.
The bank expects capitalization to improve, supported by sustained growth.
As of end-2024, LandBank’s Common Equity Tier-1 ratio was at 15.1 percent, well above the Bangko Sentral ng Pilipinas’ minimum requirement of 10.25 percent.
LandBank said this reflects strong capital buffers that support lending capacity. / PNA