Asialink Finance Corp., one of the largest non-bank lenders in the country, received a “Ba2” long-term corporate family rating from Moody’s Ratings, which cited the firm’s robust capital buffers and dominant position in the domestic credit market.

In a statement, Moody’s said the credit agency assigned a “stable” outlook to the Pasig-based company, reflecting an expectation that Asialink will maintain its strong profitability despite risks associated with its aggressive expansion.

While Moody’s assigned a standalone assessment of ba2, it noted that this score sits two notches below the company’s initial financial profile.

This adjustment reflects concerns over modest asset quality as the lender pursues rapid loan growth within higher-risk borrower segments, Moody’s said.

Asialink specializes in providing credit to micro, small, and medium-sized enterprises, primarily through loans secured by real estate and second-hand vehicles.

The company recently streamlined its operations by consolidating its subsidiaries, Global Dominion Financing Inc. and South Asialink Financial Corp. This reorganization followed a 2024 equity injection from Creador, a Malaysian private equity firm.

According to Moody’s, the consolidation is designed to drive operational efficiencies across the group, as the three entities previously operated with overlapping secured product offerings.

Capitalization remains the primary pillar of Asialink’s credit strength. The company’s ratio of tangible common equity to tangible managed assets surged to 27.4 percent at the end of 2024, an increase from 17.6 percent a year earlier.

Moody’s analysts expect this capital level to remain above 21 percent over the next 12 to 24 months, providing a substantial cushion against potential credit losses.

Profitability metrics for the lender remain high by regional standards, even as the company navigates a shifting interest rate environment. Asialink’s return on assets moderated to 5.0 percent in 2024 from 6.9 percent in the prior year, yet its net interest margin stood at 23 percent, outperformed most of its peers in Southeast Asia.

Moody’s said this margin is supported by an expansive physical distribution network of branches and established partnerships with local car dealers.

Despite the positive rating, Moody’s noted structural vulnerabilities, including a heavy reliance on wholesale funding and relatively thin on-balance sheet liquidity.

The agency also flagged environmental and governance risks, noting that the Philippines’ exposure to physical climate events could impact the collateral underlying the company’s loan book.

Asialink, which reported total assets of ₱49.7 billion as of June 2025, could see a rating upgrade if it diversifies its funding sources and increases its liquidity holdings. However, Moody’s warned of a potential downgrade if the company’s return on assets falls below 3.5 percent or if its capital ratio deteriorates to less than 18 percent.