Philippine Savings Bank (PSBank) said it has received the highest rating from Philippine Rating Services Corp. (PhilRatings) for its Tier 2 note issue.
PSBank, the consumer and retailbanking arm of the Metropolitan Bank and Trust Co, announced the rating in a disclosure signed by its senior vice president and chief finance officer, Perfecto Ramon Dimayuga Jr., to the Philippine Stock Exchange on Thursday.
In its rating announcement, PhilRatings said that PSBank’s proposed unsecured subordinated notes of up to P3 billion received a rating of “PRS Aaa,” while the bank’s outstanding P3 billion unsecured subordinated notes kept their “PRS Aaa” rating.
“PRS Aaa” is the highest rating that can be assigned to an obligator, adding that obligations rated as such are of the highest quality with minimal credit risk. PhilRatings said.
“The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to PSBank and may change the ratings at any time, should circumstances warrant a change,” it added.
PSBank’s latest rating reflects its very good quality management; its aggressive, highly visible competitive strategy; very satisfactory asset quality; and sound capitalization, it said.
It added that the ratings also considered the continuing favorable outlook for the domestic consumer market where PSBank has established a strong presence.
As of December 31, 2013, PSBank was the country’s second-largest thrift bank in terms of assets, loans, deposits and capital. Based on its published balance sheet, PSBank’s market share of the thrift banking sector was 16.7 percent of assets, 16.8 percent of deposits and 19.6 percent of loans as of December 31, 2013.
PSBank generates majority of its earnings from its retail and consumer business.
Last year, PSBank reported a net income of P2.9 billion, up by 29 percent from the P2.3 billion of 2012.