S&P lifts Security Bank view to positive

Standard & Poor’s said it revised the outlook on the long-term issuer credit rating on Security Bank Corp. to positive from stable.

The agency also said it affirmed the BB+ long-term and B short-term issuer credit ratings and axBBB+ long-term and axA-2 short-term Asean regional scale ratings on the bank.

S&P also said it affirmed the BB+ long-term issue rating on it outstanding notes.

The outlook revision reflects the bank’s improved capital position after MUFG acquired a 20% stake in the bank, S&P said.

The deal will increase the bank’s capital by 36.9 billion in Philippine pesos on a pro-forma basis from 52.4 billion in pesos as of Sept. 30, 2015, the agency said.

Security Bank will use the additional capital to pursue more rapid growth, particularly in the retail sector, which complements its strengths in corporate- and wholesale-banking, S&P said.

The agency said it believes the bank’s retail growth plans are ambitious. While the retail sector offers higher yields, it also presents greater delinquency risks, which could lead to an increase in the bank’s credit costs, S&P 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.