Fitch Ratings has upgraded the viability rating (VR) of state-run Land Bank of the Philippines to ‘bb+’ from ‘bb’, citing improved standalone financial strength, stronger capital buffers, and an enhanced profitability outlook.
The credit rating agency also reaffirmed LandBank’s long-term issuer default rating (IDR) at ‘BBB’/Stable and its Government Support Rating (GSR) at ‘bbb’, underscoring its full state ownership and systemic importance to the Philippine economy.
The upgrade follows Fitch’s revised assessment of the Philippine banking sector’s operating environment, which was raised to ‘bbb-’/Stable from ‘bb+’/Stable, reflecting improved credit conditions.
“This latest rating upgrade is a testament to LANDBANK’s sound financial foundation and resilience,” LANDBANK president and CEO Lynette V. Ortiz said. “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.”
Fitch raised LANDBANK’s earnings and profitability assessment to ‘bb’/Positive from ‘bb-’/Stable, citing expectations of improved core profitability as credit costs decline amid a resilient economy and lower interest rates.
As of end-2024, LANDBANK reported a Common Equity Tier-1 (CET1) ratio of 15.1%, exceeding the Bangko Sentral ng Pilipinas’ minimum requirement of 10.25%. Fitch expects the bank’s capitalization to strengthen further, driven by sustained organic growth.
LANDBANK, the Philippines’ largest government-owned and controlled corporation (GOCC) and a major credit provider to the agriculture sector, said it remains committed to financial inclusion and national development.
