PH banks stronger than ever–S&P
The upgrade for the banking system followed the improved outlook on the economy.
S&P Global Ratings has raised its rating for the Philippine banking system from 7 to 6, against a robust domestic economy that will stimulate the sector’s growth.
The scale is based on a 1-10 range, with a lower score the better.
“High household consumption, investment, and exports (mainly of electronics, commodities, and
services) continue to support economic activity. These strengths will likely be underpinned by
strong household and company balance sheets, sound growth in jobs and income, inward
remittance flows, and an adequately performing financial system,” S&P said in its latest assessment.
“Pre-emptive prudential measures to control banks’ real estate exposures have led to
moderation of credit growth in this segment, which mitigates the build-up of economic
S&P recently gave a positive outlook on the Philippine economy and the banking industry will enjoy that lift.