RCBC Credit Rating Outlook Upgraded To Positive

Moody's Investors Service has revised the credit rating outlook of Yuchengco-led Rizal Commercial Banking Corp. (RCBC) to positive from stable, reflecting a fresh capital infusion from its Japanese strategic investor.

Photo Insert: Japan’s Sumitomo Mitsui Banking Corp. (SMBC) infused P27 billion to hike its stake in the Yuchengco-led bank to 20 percent from the previous five percent.

The revision was made as the debt watcher affirmed RCBC’s investment grade credit rating at Baa3.

Japan’s Sumitomo Mitsui Banking Corp. (SMBC) infused P27 billion to hike its stake in the Yuchengco-led bank to 20 percent from the previous five percent. “The change in outlook to positive reflects RCBC’s improved capital position after the P27 billion capital infusion from SMBC,” Moody’s said.

In addition, the credit rating agency expects that RCBC will maintain its capitalization, as denoted by tangible common equity/adjusted risk-weighted assets, at around 14 percent over the next 12 to 18 months, a level that is adequate and generally on par with its domestic rated peers’.

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