Hanjin's creditor banks play down size of loan exposures

ABS-CBN News

Posted at Jan 15 2019 11:42 AM | Updated as of Jan 15 2019 01:16 PM

A Hanjin Shipping Co. ship is seen stranded outside the Port of Long Beach, California, US. The Korean's shipbuilding unit in the Philippines has sought court-assisted rehabilitation to pay some $412 million in debt. Lucy Nicholson, Reuters

MANILA -- (UPDATE) Hanjin Philippines creditor banks on Tuesday said they did not expect their loan exposures to shipbuilder to affect their financial standings.

BDO, the country's largest lender, said Hanjin's loan accounted for 0.15 percent of its total loan portfolio. Second-largest Metrobank said its exposure was "relatively low" compared to its total loans.

Number 4 bank BPI said its exposure amounted to 0.2 percent of its total loan book.

The banks issued separate disclosures to the stock exchange after the Manila Times reported Tuesday that Moody's could cut the ratings of 5 banks with a combined $412 million loan exposure to Hanjin.

The Korean shipbuilder that operates in Subic Bay earlier filed a petition for rehabilitation before an Olongapo City court.

BDO said the Hanjin loan relative to its loan portfolio "is not considered a material amount."

BPI said it "partially provisioned" for the Hanjin loan and additional provisions this year were "manageable."

Shares of BDO were down 0.46 percent at noon Tuesday while BPI was up 1.74 percent. The main index was down 0.31 percent.