Metro Manila, Philippines – In its latest assessment, international credit rating agency Fitch Ratings affirmed the Land Bank of the Philippines’ (LANDBANK) ‘BBB’ investment‑grade Long‑Term Issuer Default Rating and its Viability Rating at ‘bb+’. The affirmation reflects the Bank’s policy role, strong government support,and stability in its financial, operational, and governance fundamentals.
Fitch revised LANDBANK’s Outlook to ‘Negative’ from ‘Stable,’ which is equalized with the Philippines’ sovereign rating of ‘BBB/Negative’. The Outlook revision is sovereign‑driven, reflecting current national economic conditions and the close linkage between the Bank’s credit ratings and the country’s sovereign credit profile.
Based on Fitch’s assessment, the government has strong capacity and propensity to prioritize any required state support for LANDBANK, a wholly state-owned policy institution with an increasingly important policy function and high systemic importance due to its approximately 14% share of system deposits.
Fitch underscored LANDBANK’s policy mandate to serve and support the agriculture and fisheries sectors, rural development, and priority sectors, including farmers, fishers, agrarian reform beneficiaries, and micro, small and medium enterprises (MSMEs). They further emphasized that these remain highly relevant policy priorities for the Philippines today, and the Bank’s broader remit of enhancing financial inclusion to MSMEs take on increased importance during periods of slower economic growth.
“LANDBANK remains a strong and dependable partner of government. Our investment-grade rating was affirmed because our fundamentals are sound, our governance is strong, and our mandate remains clear. We will continue to support our clients, advance financial inclusion, and contribute to countryside and national development,” said LANDBANK President and CEO Lynette V. Ortiz.
As the country’s largest development bank, LANDBANK remains committed to sound financial
management, effective governance, and the fulfillment of its mandate to support inclusive growth and national development priorities.
