S&P puts Equitable PCI Bank on positive watch

Standard & Poor's said it placed its B long-term counterparty credit rating on Philippines' Equitable PCI Bank Inc. on CreditWatch with positive implications after Banco de Oro Universal Bank (B+/stable/B) announced that it will merge with Equitable. Equitable's B senior unsecured debt rating and CCC+ subordinated debt rating were also placed on CreditWatch with positive implications.

The merger offer would be valid up to Jan. 31 and would take place by way of a swap of common shares. Banco De Oro would be the surviving entity.

S&P said that if the merger takes place, the merged entity's asset quality and capitalization would be essentially a weighted average of the standalone entities. The proposed merger would also create the third-largest commercial bank in the Philippines, whose business and financial profile the agency said would be superior to that of Equitable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.