Moody’s stabilizes Philippine National view

Moody’s Investors Service said it changed its outlook for Philippine National Bank to stable from negative and affirmed its ratings.

The rating affirmation and the outlook revision were driven by an improvement in the bank's asset quality over the past 12 months, the agency said.

“The bank's nonperforming loan (NPL) ratio improved to 6.5% at the end of June 2022 from 11.5% a year ago, driven by a normalization of loan repayments by a few large exposures in pandemic-impacted sectors such as travel and tourism. Moody's expects the bank's asset quality to remain stable over the next 12-18 months because its legacy problem loans are largely classified as NPLs while its new loan underwriting has been conservative over the past two years,” the agency said in a press release.

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