Moody’s upgrades PNB ratings

MANILA, Philippines - Moody’s Investors Service has raised last month the credit rating outlook of the Philippine National Bank (PNB) from “stable” to “positive.” The agency also affirmed PNB’s Ba2/NP local and foreign currency deposit ratings which reflects ongoing improvements in the credit profile of the Bank. It likewise raised PNB’s financial strength rating (BFSR) / baseline credit assessment (BCA) to D-/ba3 from E+/b1, reflecting the improvement in the bank’s financial profile, following the merger with Allied Banking Corp. in 2013. In addition, the outlook on PNB’s BFSR is maintained as “positive”. Standard & Poor’s Ratings Services also hiked its outlook on PNB from “stable” to “positive” last March. Last February, PNB successfully generated P11.6 billion in fresh capital from a stock rights offering which strengthened its capital position under the Basel III standards. The success of the offering is also a strong testament that the Bank’s stockholders have full confidence on the long-term prospects of PNB.