Moody’s affirms BDO, Metrobank credit ratingshome/Business/Top Business/Moody’s affirms BDO, Metrobank credit ratingsInvestment grade ratings for two banks affected by a Subic-based shipbuilder’s bankruptcy — potentially the biggest default in Philippine corporate history — have been affirmed by Moody’s Investors Service. BDO Unibank, Inc. and Metropolitan Bank & Trust Co. (Metrobank) continue to be rated “Baa2” with a stable outlook and Moody’s also said there was a “very high probability” that the government would extend support to the banks if needed. Earlier this month, Moody’s had warned that the five banks exposed to the insolvency of Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) — BDO, Metrobank, Land Bank of the Philippines (Landbank), Rizal Commercial Banking Corp. (RCBC) and Bank of the Philippine Islands (BPI) — could see their credit ratings fall given potential losses of around $412 million. RCBC was said to be the most exposed at around $140 million, followed by $80 million for Landbank, about $72 million for Metrobank and some $60 million for both BDO and BPI. Share prices of the banks rose on news of their affirmed credit ratings, with BDO rising 1.38 percent or P1.80 to close at P131.80 apiece, while Metrobank gained 0.18 percent or P0.15 to P82.50 per share.

Source: Manila Times January 22, 2019 16:45 UTC