MANILA - Deposit ratings of four banks as well as the senior unsecured rating of the estate-owned National Power Corporation have been upgraded by Moody’s Investor Service.

Ratings of the Sy-led Banco de Oro Unibank, the Ayala-led Bank of the Philippine Islands, estate-owned Land Bank of the Philippines, and the Ty-led Metropolitan Bank & Trust Company were upgraded to Baa2/Prime-2 from Baa3/Prime-3.

Relatively, ratings of the NPC was upgraded to Baa2 with stable outlook, similar to that of the Philippine government’s long-term foreign currency and local currency rating, which the debt watcher also upped Thursday.

The country’s ratings are now at the second level of investment grade and was given a year after the debt watcher elevated the country to investment grade in December 2013.

In a statement, Moody’s said it also raised BDO, BPI and Metrobank’s financial strength ratings to C- from D+ “to reflect improvements in their standalone credit profiles.”

The banks’ baseline credit assessments (BCAs) were also upgraded to baa2 from baa3.

“Moody's considers that the credit strength of the Philippine government is an important input in its assessment of the latter's capacity to provide support in times of stress, and believes that these four banks -- due to their systemic importance -- are more likely to fully benefit from the higher sovereign rating,” the debt watcher said in its assessment.

With this, Moody’s also upgraded BDO's senior unsecured debt rating to Baa2 from Baa3 and Metrobank’s BCA namely local currency subordinated debt rating to Baa3 from Ba1 and foreign currency preferred stock rating to Ba2 (hyb) from Ba3 (hyb).The outlook on all the ratings is stable, it said.

For NPC, Moody’s said the upgrade “reflects the Philippine government’s unconditional and irrevocable guarantee for NPC’s rated longterm bond.”

The credit rater said NPC has transferred 99.9 percent of its US dollar-denominated bonds to the Power Sector Assets and Liabilities Management Corporation including the $300 million due in 2028 and the $160 million due in 2016.*PNA

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