The bank was earlier rated by Fitch with an investment-grade score of “BBB” with a stable outlook.
Fitch said in a statement the senior unsecured instruments were rated at the same level as DBP’s long-term foreign-currency issuer default rating, in accordance with Fitch’s criteria.
“We expect a high probability of extraordinary state support for DBP, if needed, due to its strategic policy role, full state ownership, systemic importance as the second-largest state-owned bank in the Philippines with around 5-percent share of system assets, and the state’s ability to provide support as indicated in the sovereign rating of ‘BBB’/stable,” Fitch said.
DBP earlier said it was eyeing to increase its authorized capital from P35 billion to P100 billion to enable it to broaden credit assistance to priority sectors.
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