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Hanjin crisis threatens banks' credit ratings – Moody's

January 15, 2019 7:26 AM
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Debt watcher Moody's says the loan exposure of 5 Philippine banks is a credit negative and will drive credit costs higher

MANILA, Philippines – The loan exposure of 5 of the country's biggest banks to South Korean shipbuilder Hanjin Heavy Industries and Construction Philippines may drag down their credit ratings and drive credit costs higher, the latest report of debt watcher Moody's Corporation said.

Moody's said the $412-million loan exposure is a credit negative for the Bank of the Philippine Islands (BPI), Land Bank of the Philippines (Landbank), Metrobank, Rizal Commercial Banking Corporation (RCBC), and BDO Unibank, because they will need to incur additional credit charges related to Hanjin, and in turn reduce their profit.

The ratings give investors an idea of the credit worthiness of the banks and measures expected losses in the event of a default.

Source: rappler.com

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