S&P affirms Equitable PCI Bank

Standard & Poor's said it affirmed Philippines-based Equitable PCI Bank Inc.'s B long- and short-term counterparty credit ratings, B senior unsecured debt rating and CCC+ subordinated debt rating and removed them from CreditWatch, where they were placed on Jan. 9 with positive implications. The outlook is stable.

The ratings were removed from CreditWatch following a lack of development on a potential merger or acquisition for Equitable. In early January, Banco de Oro Universal Bank offered to merge with Equitable. Although Equitable's board and its shareholders did not respond to the offer, which technically lapsed on Jan. 31, Banco de Oro has indicated that it is still willing to acquire Equitable at mutually acceptable terms.

S&P said the ratings on Equitable reflect its stable funding profile, which is underpinned by a strong franchise in the domestic banking sector.

This is partly offset by the bank's improving, but still weak, asset quality amid a difficult economic and operating environment, the agency said.

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