Moody's: Negative view for Philippine banks

Moody's Investors Service said the fundamental credit outlook for the Philippine banking system is negative, reflecting expectations that a slowing economy will contribute to a cyclical weakening in the country's bank credit fundamentals.

The outlook for Philippine banks is negative based on an expectation that challenges in the operating environment will depress bank earnings and pressure their asset quality, Moody's said.

However, the outlook for the intrinsic stand-alone financial strength ratings of individual banks remains stable, the agency said, because they can absorb these pressures without experiencing a prolonged deterioration in their relative credit metrics.

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