Moody’s: Security Bank Baa2

Moody's Investors Service said it assigned credit ratings and assessments to Security Bank Corp., including Baa2 long-term local- and foreign-currency deposit ratings, Baa2 long-term local- and foreign-currency issuer ratings, P-2 short-term local- and foreign-currency deposit ratings, P-2 short-term local- and foreign-currency issuer ratings and Baa3 baseline credit assessment and adjusted baseline credit assessment.

The long-term and short-term counterparty risk assessments assigned to Security Bank are Baa2(cr) and P-2(cr), respectively.

The outlook is stable.

The ratings are based on a baseline credit assessment of Baa3 with a one-notch rating uplift due to support that the bank will receive from the government of the Philippines if needed, Moody’s said.

The stable outlook on the bank is in line with the government's sovereign rating outlook, the agency added.

The bank's ratings also consider a basic loss-given failure analysis in which creditors are not presumed to absorb losses outside of bank liquidation since no operational resolution regime is in place in the Philippines, Moody’s added.

The ratings are underpinned by the bank’s above-industry average asset quality profile and strong capital buffers, boosted by the recent capital infusion from its new strategic partner, MUFG, the agency said.

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