Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Vous êtes sur le point de quitter le site français pour être redirigé(e) vers notre site international (en anglais). Souhaitez-vous poursuivre ?
Ne plus afficher ce message.
Oui
Non
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:
​​

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​​

I AGREE
Rating Action:

Moody's reviews nine Philippine banks for possible downgrade

20 May 2009

Singapore, May 20, 2009 -- Moody's Investors Service has placed the debt and deposit ratings of nine Philippine banks on review for possible downgrade.

The banks affected are Allied Banking Corporation (ABC), Banco de Oro Unibank (BDO), Bank of the Philippine Islands (BPI), Development Bank of the Philippines (DBP), Land Bank of the Philippines (LBP), Metropolitan Bank and Trust Company (MBT), Philippine National Bank (PNB), Rizal Commercial Banking Corporation (RCBC) and United Coconut Planters Bank (UCPB).

"The review of the debt and deposit ratings will look at the extent to which the Philippine's ability to provide support to its banking system, if needed, has changed in the midst of the ongoing global economic and credit crisis," says Karolyn Seet, a Moody's Assistant Vice President and Analyst.

"Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt -- a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support," says Seet.

"However, as the financial crisis continues, the capacity of a country and its central bank to support its banks converges with, and is increasingly constrained by, the government's own debt capacity," says Seet.

As such, Moody's will be reassessing the level of systemic support for the banks listed above to determine whether the systemic support they receive needs to be more closely aligned to the government's B1 (positive) local currency bond rating. Philippine banks currently receive between two to six notches of systemic support.

Moody's will review the specific circumstances of the Philippines to determine the appropriate systemic support for Philippine bank ratings and the implications for the nine banks that have been identified as being potentially affected.

Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities.

Moody's assesses the Philippines to be a low support country. This guideline takes into consideration the history of support for banks, plus the size, strength and degree of fragmentation of the Philippine banking system.

In a low support country under worsening economic conditions, Moody's current review focuses on the rationalisation of bank ratings that currently receive multiple notches of uplift due to systemic support. This is particularly apparent for the Philippines, as illustrated by the eight-notch gap between the government bond rating of B1 and the local currency deposit ceiling of A2.

Moody's notes that today's rating actions reflect the increasingly negative impact of the global economic crisis on the Philippine economy and on the intrinsic strength of its financial institutions. Given the systemic nature of the crisis and the large, but not unlimited, resources of the Philippine government, Moody's has taken the view that the banks' local currency ratings need to be more closely aligned with the government's local currency debt rating, since it now represents the primary driver of their credit strength.

The Philippine banking system is relatively small, compared to its Asian counterparts, with banking assets equaling only 70% of GDP. The Philippine government's debt, low relative to GDP, is underpinned by the strong liquidity of the domestic banking and financial system.

This situation allows the government a high degree of flexibility to extend support to the banking system -- or at least to the top 10 banks, which Moody's believes are systemically important because they command close to 70% of system deposits -- through liquidity and capital assistance, as has previously happened. The banking system does not rely substantially on the supply of foreign currency to fund its operations.

The credit stress evident in the banking system is low relative to other Asian countries, following the worldwide economic recession. Banking system non-performing loans (NPLs) have remained resilient to the global downturn and have shown no signs of increase yet. In addition, Philippine banking system loans have experienced modest growth in the past 10 years, and have continued to experience growth during the course of 2009.

However, the rating review has been prompted by the severity and longevity of the global economic crisis -- as reflected by Moody's negative credit outlook on the Philippine banking system. Over the next two years, banks are likely to experience higher credit-related write-downs, lower growth and lower revenue, which in turn may pressure the banks' current capitalization levels.

With regard to political and historical patterns, necessary procedures and policy instruments to deal with banking system problems have been established and tested since the 1997 Asian financial crisis. In Moody's view, support is likely to be provided -- if needed -- for the very largest banks, but not for the smaller institutions. The support framework for problematic large banks will likely be aimed at maintaining ordinary banking functions and avoiding liquidation of any of these banks.

Moody's notes that the review is unlikely to lead to more than a four-notch change in the debt and deposit ratings of the institutions under review. It expects to conclude the review over the next few weeks.

No other bank ratings in the Philippines have been impacted by the reassessment of the systemic support level.

For more information, see Moody's recent report "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries" available on www.moodys.com.

PREVIOUS RATING ACTION AND PRINCIPAL METHODOLOGIES

The last rating actions for BDO, BPI, and DBP were on January 25, 2008 when the outlooks on their long-term foreign currency deposit ratings were changed to positive from stable.

The last rating action for ABC was on January 14, 2009, when its Ba3 local currency subordinated bond was confirmed, with a stable outlook.

The last rating action for LBP was on April 3, 2008, when its BFSR was upgraded to D-.

The last rating action for MBT was on August 28, 2008, when it was assigned a local currency subordinated debt rating of Baa3.

The last rating action for PNB was on May 13, 2008, when its BFSR rating was upgraded to E+.

The last rating action for RCBC was on June 2, 2008, when its BFSR was upgraded to D-.

The last rating action for UCPB was on May 3, 2003, when its BFSR was downgraded to E.

The principal methodologies used in rating these banks were "Bank Financial Strength Ratings: Global Methodology" (February 2007) and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology" (March 2007), which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory.

Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Credit Policy & Methodologies directory.

The following ratings were placed on review for possible downgrade:

ABC -- local currency subordinated debt rating of Ba3

BDO -- local currency deposit ratings of Baa2/Prime-2

BPI -- local currency deposit ratings of A3/Prime-1

DBP -- local currency deposit ratings of A3/Prime-2

LBP -- local currency deposit ratings of A3/Prime-2

MBT -- local currency deposit ratings of Baa2/Prime-2; local currency subordinated debt of Baa3; foreign currency hybrid tier-1 rating of Ba3

PNB -- local currency deposit rating of Ba1; local currency subordinated debt of Ba2

RCBC -- foreign currency hybrid tier-1 rating of B1; foreign currency senior unsecured bond rating of Ba3

UCPB -- foreign currency deposit ratings of B1

The following ratings were not affected by today's action:

ABC -- BFSR of E+; foreign currency deposit ratings of B1/Not-Prime

BDO -- BFSR of D; foreign currency deposit ratings of B1/Not-Prime

BPI -- BFSR of C-; foreign currency deposit ratings of B1/Not-Prime

DBP -- BFSR of D; foreign currency deposit ratings of B1/Not-Prime

LBP -- BFSR of D-; foreign currency deposit ratings of B1/Not-Prime

MBT -- BFSR of D; foreign currency deposit ratings of B1/Not-Prime

PNB -- BFSR of E+; foreign currency deposit ratings of B1/Not-Prime; short-term local currency deposit rating of Not-Prime

RCBC -- BFSR of D-; foreign currency deposit ratings of B1/Not-Prime

UCPB -- BFSR of E

All nine banks are headquartered in Manila.

ABC was the 12th largest bank in the Philippines with total net assets of P169 billion as of end-December 2008.

BDO was the largest bank in the Philippines with total net assets of P802 billion as of end-December 2008.

BPI was the 3rd largest bank in the Philippines with total net assets of P667 billion as of end-December 2008.

DBP was the 6th largest bank in the Philippines with total net assets of P290 billion as of end-December 2008.

LBP was the 4th largest bank in the Philippines with total net assets of P434 billion as of end-December 2008.

MBT was the 2nd largest bank in the Philippines with total net assets on of P765 billion as of end-December 2008.

PNB was the 5th largest bank in the Philippines with total net assets of P275 billion as of end-December 2008.

RCBC was the 7th largest bank in the Philippines with total net assets of P268 billion as of end-December 2008.

UCPB was the 14th largest bank in the Philippines with total net assets on a solo basis of P100 billion as of end-September 2008.

Singapore
Karolyn C. Seet
Asst Vice President - Analyst
Financial Institutions Group
Moody's Singapore Pte Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (65) 6398-8308

Hong Kong
Jerry Chien
Managing Director
Financial Institutions Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 3551-3077

Moody's reviews nine Philippine banks for possible downgrade
No Related Data.
© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.