Moody's rates Union Bank of Philippines notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to the proposed dollar-denominated senior unsecured notes of Union Bank of the Philippines to be issued under its $1 billion medium-term note program.

The outlook is stable.

The notes will have a maturity of five years and will be listed on the Singapore Stock Exchange, Moody's said.

The drawdown will be issued out of UnionBank's head office in the Philippines, the agency explained.

The Baa2 senior unsecured rating assigned to the notes is in line with UnionBank's Baa2 deposit rating and the provisional Baa2 foreign-currency rating assigned to the medium-term notes program, Moody's said.

The bank has an above industry-average core profitability, which is supported by its growing lending operations in the higher yielding retail business, the agency said.

These strengths are balanced by the bank's above-industry loan growth, a situation that could pose downside risks to its asset quality, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.