Fitch upgrades LandBank’s viability rating

Fitch Ratings has upgraded the viability rating (VR) of state-owned Land Bank of the Philippines (LandBank) from ‘bb’ to ‘bb+’, citing the bank’s strong financial standing and resilience.

In its latest assessment, Fitch also reaffirmed LandBank’s long-term issuer default rating (IDR) at ‘BBB’/Stable and its Government Support Rating (GSR) at ‘bbb’. 

The rating agency highlighted the bank’s systemic importance, full government ownership, and ongoing strong state support.

LandBank President and CEO Lynette Ortiz welcomed the upgrade, emphasizing the institution’s solid capital base and improving profitability. 

She reiterated LandBank’s commitment to supporting key economic sectors, particularly agriculture, while strengthening financial performance.

The bank’s earnings and profitability outlook was also revised upward to ‘bb’/positive from ‘bb-’/stable. Fitch cited expectations of improved core profitability due to lower credit costs, a resilient economy, and declining interest rates.

With a Common Equity Tier-1 ratio of 15.1% as of end-2024—well above the Bangko Sentral ng Pilipinas’ 10.25% minimum requirement—LandBank remains well-capitalized to support lending and sustain growth.