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Moody's: Rizal Commercial Banking's planned rights issue is credit positive

Rizal Commercial Banking Corp.'s plan to raise 15 billion Philippine pesos through a stock rights offering is credit positive, Moody's said.

The rating agency said the planned issuance will boost the bank's capital buffers well above Basel III capital rules while supporting credit growth. Moody's expects the rights offer to add about 360 basis points to the bank's common equity Tier 1 ratio as of December 2017.

The Philippine lender said in January that shares for the offering will be coming from an increase in the bank's authorized capital stock, which was approved in November 2017. The approved increase will raise the bank's authorized capital stock to 28 billion pesos from 16 billion pesos.

As of Feb. 2, US$1 was equivalent to 51.69 Philippine pesos.