Fitch upgrades BPI, BDO, DBP, Land Bank of Phils. CHIB, RCB, SECB and UBP.
Ratings for BPI, BDO, DBP and Land Bank were affirmed at a 3 while CHIB, RCB, SECB and UBP were upgrade from a 4 to a 3. A rating of 3 indicates a “moderate” likelihood of government intervention in the institution.
BPI’s was upgraded to a BB+ due to its exposure to government finances. BDO was upgraded to a BB+ from a BB due to a large amount of fresh capital from the bank’s issue in 2011.
Fitch cites various risk factors for a downgrade if banks cannot manage their losses, exposure concentration and overly-aggressive growth plans. Fitch believes BDO’s rapid expansion has weakened its profitability and capitalization measures.