Moody's may cut nine Philippine banks

Moody's Investors Service has placed the debt and deposit ratings of nine Philippine banks on review for possible downgrade.

The review 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, Moody's said.

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, the agency said.

Allied Banking Corp.'s local currency subordinated debt rating of Ba3 is on downgrade review. Its bank financial strength rating of E+ and foreign-currency deposit ratings of B1/not-prime are unaffected.

Banco de Oro Unibank's local-currency deposit ratings of Baa2/prime-2 are on downgrade review. Its bank financial strength rating of D and foreign-currency deposit ratings of B1/not-prime are unaffected.

Bank of the Philippine Islands's local-currency deposit ratings of A3/prime-1 are on downgrade review. Its bank financial strength rating of C- and foreign-currency deposit ratings of B1/not-prime are unaffected.

Development Bank of the Philippines's local-currency deposit ratings of A3/prime-2 are on downgrade review. Its bank financial strength rating of D and foreign-currency deposit ratings of B1/not-prime are unaffected.

Land Bank of the Philippines's local-currency deposit ratings of A3/prime-2 are on downgrade review. Its bank financial strength rating of D and foreign-currency deposit ratings of B1/not-prime are unaffected.

Metropolitan Bank and Trust Co.'s local-currency deposit ratings of Baa2/prime-2, local-currency subordinated debt of Baa3 and foreign-currency hybrid tier-1 rating of Ba3 are on downgrade review. Its bank financial strength rating of D and foreign-currency deposit ratings of B1/not-prime are unaffected.

Philippine National Bank's local-currency deposit rating of Ba1 and local-currency subordinated debt of Ba2 are on downgrade review. Its bank financial strength rating of E+, foreign-currency deposit ratings of B1/not-prime and short-term local-currency deposit rating of not-prime are unaffected.

Rizal Commercial Banking Corp.'s foreign-currency hybrid tier-1 rating of B1 and foreign-currency senior unsecured bond rating of Ba3 are on downgrade review. Its bank financial strength rating of D- and foreign-currency deposit ratings of B1/not-prime are unaffected.

United Coconut Planters Bank's foreign-currency deposit ratings of B1 are on downgrade review and its bank financial strength rating of E is unaffected.

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