Moody's cuts ratings for seven banks

Moody's Investors Service said it lowered the credit ratings of seven Philippine banks - Banco de Oro Universal Bank, Bank of the Philippine Islands, Development Bank of the Philippines, Equitable-PCI Bank, Land Bank of the Philippines, Metropolitan Bank & Trust Co., and Philippine National Bank, concluding the review initiated on Nov. 26.

The following ratings were downgraded:

Banco de Oro Universal Bank - Ba2 long-term foreign currency deposit rating was lowered to Ba3. The outlook is negative.

Bank of the Philippine Islands - Ba2 long-term foreign currency deposit rating was lowered to Ba3. The outlook is negative.

Development Bank of the Philippines - Ba2 long-term foreign currency deposit rating was lowered to Ba3. Baa3/Prime-3 long-term/short-term local currency deposit ratings were lowered to Ba1/Not-Prime. The outlooks for the long-term deposit ratings are negative.

Equitable-PCI Bank - Ba2 long-term foreign currency deposit rating was lowered to Ba3 and is constrained by the country's foreign currency ceiling. The Ba1 foreign currency subordinated debt rating was also revised to Ba2, which is above the bank's constrained deposit rating. The outlooks are negative.

Land Bank of the Philippines - Ba2 long-term foreign currency deposit rating was lowered to Ba3. The outlook is negative.

Metropolitan Bank & Trust Co. - Ba2 long-term foreign currency deposit rating was lowered to Ba3. Ba1 foreign currency subordinated debt rating was also revised to Ba2, which is above the bank's constrained deposit rating. The outlooks are negative.

Philippine National Bank - Ba1 foreign currency debt and Ba2 long-term deposit ratings were lowered to Ba2 and Ba3, respectively. The local currency Baa3/Prime-3 long-term/short-term deposit and Ba1 subordinated debt ratings were also revised to Ba1/Not-Prime and Ba2, respectively. The outlooks for the long-term debt and deposit ratings are negative.

The following rating was confirmed:

Banco de Oro Universal Bank - Ba2 long-term foreign currency debt rating was confirmed, reflecting the bank's moderate debt servicing capability. The outlook is negative.

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