Fitch assigns BB to Equitable-PCI foreign currency

Fitch said it assigned Equitable-PCI Bank a long-term foreign currency BB rating, which has a negative outlook, a short-term B rating, an individual D rating and support 3 rating following the recent announcement that the Go family would sell its 24.8% stake in the bank to Banco de Oro Universal Bank.

"The Go family's departure should pave the way for the settlement of a dispute for control of EPCI's board, which came to a head last month when shareholders led by the Social Security System and the Go family formed separate boards of directors. The resolution of the dispute will remove what is likely to have been both a distraction for senior management and a concern for the bank's creditors and depositors," said Ivan Tan, associate director in Fitch's Financial Institutions team in Asia.

From a systemwide perspective, Fitch also considers the development a positive one, since it will give impetus to further consolidation of the somewhat fragmented and generally weak Philippine banking industry.

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