Plantersbank gets top credit rating

MANILA, Philippines - Planters Development Bank, the country’s largest private development bank, has obtained an issuer rating of PRS A plus from the Philippine Rating Services Corp. (PhilRatings).

An issuer rating of PRS A means that the obligor has an above average capacity to meet its financial commitments relative to that of other Philippine corporates. The company, however, is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than higher-rated corporates. A plus sign is added to further qualify the rating.

An issuer rating is an opinion on the general and overall creditworthiness of the issuer, evaluating its ability to meet all its financial obligations within a time horizon of one year. The focus is on financial strength and stability under normal and stressed conditions to be able to meet existing and prospective financial obligations.

Plantersbank’s key strength is in the small and medium enterprise (SME) market, where the bank has a very strong franchise. As of end-2010, SME loans accounted for approximately 62 percent of the bank’s portfolio.

The issuer rating assigned to Plantersbank reflects the bank’s established presence in its chosen market niche, good management, improving asset quality and modest profitability.

Plantersbank continues to have a strong franchise in the SME market, which it has chosen to focus on since the bank’s beginnings in the early 1960s. Efforts to reinforce Plantersbank’s image as the bank for SMEs is not limited to its products and services, but also includes the bank’s social advocacies. This consistency in purpose has been a plus factor in the continued recognition of Plantersbank as an important market player in SME credit, despite increasing competition from other financial institutions in the past years.

“Plantersbank’s strong corporate identity is the foundation upon which its management is based. PhilRatings considers the quality of Plantersbank’s management to be good. Sound leadership is provided by Ambassador Jesus P. Tambunting, chairman and president, who has ably directed Plantersbank’s growth from its small beginnings. Recent changes in management are viewed as positive developments, with the extensive banking experience of new senior officers expected to support and give direction to the aggressive growth that Plantersbank has set for itself in the near future,” PhilRatings said.