Philippine banks remain stable – S&P
Global credit watchdog S&P Ratings expects Philippine banks to benefit from the local economy’s positive growth prospects.
In a report tilted, “Philippines banks to continue to ride robust economic growth,” S&P Global Ratings said the outlook for banks in the Philippines is stable over the next 12 months, reflecting supportive economic conditions and sound financial fundamentals.
“We believe the combination of sound capital and funding profiles is an enduring strength of the Philippine banking system and will continue to
underpin ratings on the country’s banks in 2017,” said Ivan Tan, S&P Global Ratings’ credit analyst.
S&P Global expects the Philippine banking sector to grow by15 percent to 17 percent in 2017 and 2018, following a 16.5 percent expansion last year.
“We believe that the credit cycle in the Philippines has further to run,” Tan said.
According to S&P Global, the country’s robust economic conditions will continue to support borrower repayment, adding that the corporate sector, which accounts for 82 percent of the banking sector exposure, has healthy margins, good profitability, and adequate interest coverage.