Fitch ups 2 Philippine banks

Fitch Ratings said it upgraded two Philippine banks' long-term issuer default ratings and affirmed all other ratings of five banks following the upgrade of the country's sovereign ratings.

The outlook is stable.

The upgrades follow the upgrade of Philippines' sovereign ratings and expectations of a stable domestic economic outlook, which will be supportive of the local banks' performance and credit profiles, Fitch said.

The long-term issuer default ratings of Bank of the Philippine Islands and Development Bank of the Philippines were upgraded, as the sovereign upgrade suggests lower credit risks associated with the banks' sizable exposure to the Philippine government, the agency said.

Bank of the Philippine Islands' long-term foreign-currency issuer default rating was upgraded to BB+ from BB and long-term local-currency issuer default rating to BBB- from BB+. Its national long-term rating was affirmed at AAA(phl) and step up callable lower tier 2 subordinated notes at AA+(phl). The outlook is stable.

Development Bank of the Philippines's long-term foreign-currency issuer default rating was upgraded to BB+ from BB and senior notes to BB+ from BB. Its long-term local-currency issuer default rating was affirmed at BB+, national long-term rating at AA+(phl) and perpetual callable subordinated hybrid notes at B+.

Banco de Oro Unibank, Inc.'s long-term foreign-currency and local-currency issuer default ratings were affirmed at BB, national long-term rating at AA(phl) and senior notes rating at BB.

Metropolitan Bank & Trust Co.'s long-term foreign-currency issuer default rating was affirmed at BB, short-term foreign-currency issuer default rating at B and variable-rate perpetual callable non cumulative tier 1 subordinated notes at B.

Land Bank of the Philippines' long-term foreign-currency and local-currency issuer default ratings were affirmed at BB, national long-term rating at AA(phl) and variable-rate callable subordinated notes at BB-.

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