Fitch affirms Development Bank of Philippines

Fitch Ratings said it affirmed the Development Bank of the Philippines' long-term foreign-currency issuer default rating at BB, long-term local-currency issuer default rating at BB+ and national long-term rating at AA+(phl), along with a BB- rating on its $130 million perpetual callable subordinated hybrid notes.

The outlook is stable.

The ratings are based on the bank's strong balance sheet strength and adequate profitability for a policy bank, Fitch said. These factors should underpin the bank's ability to negotiate the more difficult operating environment, the agency said, even though its financial profile is likely to come under some pressure.

Downside risks to the bank's ratings also may be mitigated by the high propensity of regulatory support in the unlikely event of need, Fitch said, although the timeliness of support could be constrained by the government's low ability, given its sovereign issuer default rating of BB.

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