Moody's affirms ratings of three Philippine banks

Debt watcher Moody’s Investors Service has affirmed the long-term deposit ratings of three Philippine banks amid strong liquidity and profitability.

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Moody’s kept the Baa2 deposit ratings of BDO Unibank Inc., Bank of the Philippine Islands (BPI) and Metropolitan Bank and Trust Co. (Metrobank), giving a stable outlook.

For BDO, Moody's said the Sy-led bank has a stable asset quality and strong credit underwriting despite its high consumer loan growth in the past three years. Moody’s also cited the bank’s robust funding and liquidity, good profitability and adequate capital.

BDO’s profitability is expected to remain stable on the back of anticipated rate cuts and the growth of its higher yielding consumer loans.

Moody’s expects BDO’s credit costs to remain low while its non-interest income is expected to grow, supporting the bank’s bottom line.