Moody's Ratings assigned a 'Ba2' long-term corporate family rating (CFR) to Asialink Finance Corp., a prominent non-bank lender in the Philippines. The outlook is stable. Moody's expects Asialink to sustain strong profitability despite risks associated with its aggressive expansion strategy.
The rating is supported by the company's robust capital buffers and its dominant position in the domestic credit market. Capitalization stands as a key credit strength. Moody's anticipates the ratio of tangible common equity to tangible managed assets will remain strong, offering a substantial cushion against potential credit losses.
Asialink also boasts high profitability compared to regional standards. However, the rating agency noted structural vulnerabilities. These include a reliance on wholesale funding and modest asset quality stemming from rapid loan growth in higher-risk borrower segments.
No significant market reaction was noted for MCO (Moody's Corporation). This rating action is considered standard for a foreign entity.