Moody's downgrades two Philippine banks

Moody's Investors Service said it downgraded the ratings on the hybrid tier 1 securities of Metropolitan Bank & Trust Co. and Rizal Commercial Banking Corp. in line with the agency's revised guidelines for rating bank hybrids and subordinated debt published in November.

Metropolitan Bank's non-cumulative step-up callable perpetual capital securities were lowered from B1 to B2, three notches below the adjusted baseline credit assessment of Ba2.

Rizal Commercial's non-cumulative step-up callable perpetual capital securities were lowered from B2 to B3, three notches below the adjusted baseline credit assessment of Ba3.

Prior to the global financial crisis, Moody's said it incorporated support from national governments and central banks. But in many cases, systemic support for these instruments has not been forthcoming, the agency said.

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