International debt rater Moody’s Investors Service has assigned a Baa2 rating to Banco de Oro’s planned offering of dollar-denominated senior, unsecured notes.
The bonds–to be issued under the lender’s $2 billion Medium Term Note (MTN) program –will have a maturity of five years and will be listed on the Singapore Stock Exchange.
“The Baa2 senior unsecured debt rating is anchored on BDO’s Baa2 baseline credit assessment and Moody’s expectation of a very high probability of systemic support from the Philippine government (Baa2 stable),” Moody’s said.
The debt watcher said BDO’s Baa2 baseline rating takes into account BDO’s domestically focused, prominent, and growing franchise; stable asset quality and loss absorbing buffers; sufficient capital levels that exceed regulatory minima; and robust funding and liquidity profile.
“The BCA also incorporates the weaker aspects of BDO’s profile, including downside risks to loan quality posed by a relatively unseasoned loan book and high concentration in the manufacturing sector,” it said.