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.