Moody’s downgrades PHL banking sector outlook to negative

Moody's Investors Service has downgraded its outlook on the Philippine banking industry to 'negative' due to the impact of the Luzon lockdown on the economy.

The downgrade reflects expectations that the shutdown will negatively affect near-term economic conditions, increasing asset risks and pressure on bank profitability.

Despite this, Moody's noted that local banks' strong capital buffers should help them withstand the challenges in the short term.