BDO Unibank's Survival Rating Increased, Default Rating Confirmed

Fitch Ratings has upgraded BDO Unibank, Inc.'s Viability Rating (VR) from 'bb+' to 'bbb-' and affirmed its Long-Term Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook. The Government Support Rating (GSR) remains at 'bbb-'. The increase in the VR reflects BDO's credit strength supported by the improving operating environment in the Philippine banking sector. Fitch expects the country's robust economic growth to enhance asset quality and income prospects in the near to medium term, with BDO's strong local franchise contributing to its VR by maintaining a leading funding position.

The Philippines' real GDP growth is projected to rise to approximately 5.9% in 2025 and 6.2% in 2026, surpassing the median growth of similarly rated markets. Supported by low interest rates and ongoing infrastructure development, this growth is expected to generate vibrant loan demand in the short term. BDO, the largest bank in the Philippines with a 19%-22% share of system loans and deposits, benefits from its strong local franchise and market leadership, enabling it to attract quality clients and maintain resilient profitability across business cycles.