Fitch upgrades Landbank’s viability rating

MANILA, Philippines — State-run Land Bank of the Philippines (Landbank) secured an upgraded viability rating from debt watcher Fitch Ratings, boosting the financial institution’s profitability outlook.

In a statement, Landbank said its viability rating has improved to ‘bb+’ from ‘bb’, reflecting the bank’s better financial standing.

Fitch likewise reaffirmed the bank’s long-term issuer default rating at ‘BBB’ or stable, as well as its government support rating at ‘bbb.’

Landbank president and CEO Lynette Ortiz said Fitch’s upgrade highlights the bank’s stronger capital buffers and enhanced bottomline prospects.

“This is a testament to Landbank’s sound financial foundation and resilience. We are well-positioned to drive stronger financial performance while deepening our commitment to agriculture and other key economic sectors,” Ortiz said.

Further, the state-run bank’s earnings and profitability assessment was also a step-up to ‘bb’/positive from ‘bb-’/stable, with Fitch citing expectations of improved core profitability as credit costs decline on the back of economic expansion and interest rate easing.

Landbank’s capitalization is also projected to improve, supported by sustained organic growth.

As of 2024, Landbank’s common equity tier-1 ratio is at 15.1 percent, above the central bank’s minimum requirement of 10.25 percent.

Landbank said it remains committed to advancing financial inclusion and national development as the country’s largest state-run corporation and the biggest credit provider to the agriculture sector and its value chain.