MANILA – Moody’s Investors Service yesterday upgraded the foreign currency deposit ratings of four banks in the Philippines.

Moody's gave the Banco de Oro Unibank, Bank of the Philippine Islands, Metropolitan Bank & Trust Company and Land Bank of the Philippines a “Ba1” rating with the outlook “stable.”

This came after Moody's upgrades the Philippine ratings to a notch below investment grade.

Also, the rating agency upgraded BDO's foreign currency senior unsecured debt rating to Ba1 from Ba2.

“BDO's foreign currency senior unsecured debt rating of Ba1 remains the same as the rating assigned to the foreign currency government bond of the Philippines, which was upgraded to Ba1,” it said.

“The other three banks do not have outstanding senior debt ratings assigned,” it said.

Specifically, Moody’s gives BDO Bank Financial Strength Rating a “D”, global local currency deposits, Ba1/Not Prime; foreign currency deposits rated Ba1/Not Prime; foreign currency senior unsecured debt rated Ba1. These ratings have a ‘stable’ outlook.

For, BPI the rating on BFSR is D; global local currency deposits, Ba1/Not Prime; and foreign currency deposits, Ba1/Not Prime. The outlook on these is also ‘stable’.

For Metrobank, its BFSR is at D; global local currency deposits, Ba1/Not Prime; foreign currency deposits, Ba1/Not Prime; local currency senior subordinated debt, Ba2; and local currency subordinated debt, Ba2; and foreign currency hybrid tier-1, B2(hyb); The outlook on these ratings is also ‘stable’.

For the state-run Landbank, Moody’s gives it a “D” rating for BFSR; the global local currency deposits, is at Ba1/Not Prime; and foreign currency deposits, Ba1/Not Prime. The outlook on these is also ‘stable’.

On the other hand, Moody’s upgrade failed to lift the local bourse and the peso.

The main index contracted by 0.14 percent, or 7.74 points, to 5,397.42 from last Thursday’s 5,405.16 points.

Also, the broader all shares index declined by 0.10 percent, or 3.65 points, to 3,571.77 from the previous week’s 3,568.12 level.

Most of the sectoral indices fell except for the industrial and property indices.

Volume of trade reached P5.21 billion after 8.86 billion shares changed hands.

Losers led gainers at 86 to 81 while 42 stocks were unchanged.

Relatively, the peso closed weaker against the dollar at 41.27 from last Thursday’s 41.21.

It traded between 41.16 and 41.27 resulting in an average of 41.22 for the local unit.

Volume of trade amounted to $595.10 million, lower than the $794.44 million.

BDO chief strategist Jonathan Ravelas said that the weakening of the peso was due to the strengthening of the dollar against the euro.

“Markets appear to have discounted the upgrade as it just aligned with the other rating agencies,” he said.*PNA

back to top