MANILA, Philippines - Union Bank of the Philippines, the banking unit of the Cebu-based Aboitiz clan, obtained an issuer rating of PRS Aaa from local credit watcher Philippine Rating Services Corp.
A ‘PRS Aaa’ rating is the highest corporate credit rating assigned on the PRS scale.
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.
The issuer rating took into consideration UnionBank’s good market position, its solid corporate shareholders and highly experienced management team and expectations its core revenue generation will continue to drive growth.
The rating also takes into account the positive prospects for the Philippine economy and the banking industry.
Based on its published statement of condition as of June 30. Unionbank ranked 10th largest in terms of assets, ninth largest in terms of net loans and deposits, and eighth largest in terms of capital among universal and commercial banks. These translated to a 3.3 percent share of the sector’s total assets, three pwrcent of net loans, 3.2 percent of total deposits and 4.4 percent of capital.
As of the end of June, , UnionBank is 46.94 percent owned by Aboitiz Equity Ventures, one of the country’s largest conglomerates with interests in power generation and distribution, banking and financial services, food manufacturing, infrastructure and real estate development.