S&P GLOBAL RATINGS has revised its ratings outlook for the Development Bank of the Philippines (DBP) and the Power Sector Assets and Liabilities Management Corp. (PSALM) to “positive” from “stable” to reflect the change in its outlook for the Philippines’ sovereign rating.
The debt watcher on Tuesday affirmed the Philippines’ investment grade rating and revised its outlook to reflect their positive view of the economy amid improved institutional strength.
It affirmed the country’s “BBB+” long-term credit rating for the country, which is a notch below the “A” level grade targeted by the government. It also kept its “A-2” short-term rating.
S&P Global affirmed DBP’s “BBB” long-term foreign- and local-currency issuer default ratings on March 21.
Meanwhile, PSALM holds a “BBB+” long-term foreign- and local-currency issuer default rating with the debt watcher, which was last affirmed in January 2020.
S&P Global expects DBP’s and PSALM’s ratings to move in line with the country’s sovereign rating as the government is expected to support both institutions.
“As one of the two national government-owned universal banks, DBP plays a critical role in implementing the government’s medium-term development strategy,” it said.
“The company (PSALM) plays a critical role for the government in restructuring the country’s power sector,” it added. — A.M.C. Sy