Advertisement

Security Bank-MUFG deal is credit positive

Moody’s Investors Service said the cash management deal between Security Bank Corp. and Tokyo-based MUFG Bank Ltd. is credit positive for the local bank.

Moody’s said the expanded partnership between the two banks “will encourage increased business flow and help Security Bank broaden its corporate client base to MUFG’s customers while credit demand in the Philippines is subdued.”

Moody’s said the cash management initiative with MUFG “will increase Security Bank’s low-cost corporate deposits, which will reduce its funding costs.”

Security Bank could also benefit from fee income through ancillary services such as overseas transfers and settlements. The partnership provides opportunities for Security Bank to expand its client base for cross-selling to MUFG’s corporate clients, according to Moody’s.

Topics: Moody’s Investors Service , Security Bank Corp. , MUFG Bank Ltd.
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by manilastandard.net readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of manilastandard.net. While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementKPPI
Advertisement