PHL banks’ ratings to see ‘medium impact’ from Russia-Ukraine war

April 6, 2022 | 12:02 am

PHILIPPINE BANKS’ credit ratings may see “medium impact” from the war in Ukraine as they already have a negative outlook, Fitch Ratings said.

“Notably, there are a higher number of banks in India and the Philippines (‘3’) with Negative Outlooks, mirroring the sovereign,” Fitch said in a note on Tuesday.

“As their issuer default ratings (IDRs) are underpinned by sovereign support, a sovereign downgrade would lead to downgrades for the respective banks’ IDRs,” it added.

Fitch in February kept its negative outlook on the investment grade “BBB” rating of the Philippines. This means a rating downgrade could happen in the next 12 to 18 months.

The credit rater said the country’s medium-term growth trajectory faces uncertainties and hurdles to bringing down debt.

Its rating outlook on most banks in the Philippines are likewise at negative to mirror its assessment of the sovereign as their operating environment is expected to be affected by the economy’s downturn amid the coronavirus pandemic.

Fitch in July revised its outlook on rated local lenders to negative. These include state-led Land Bank of the Philippines (BBB) and Development Bank of the Philippines (BBB-), as well as private lenders Bank of the Philippine Islands (BBB-), Philippine National Bank (BB), BDO Unibank, Inc., (BBB-) and Metropolitan Bank & Trust Co. (BBB-).

Fitch said direct banking system exposure of Asia-Pacific financial institutions to Ukraine and Russia is generally less than 0.5% of total assets and is mostly concentrated in Japanese banks. This means their exposure is unlikely to pose systemic risks.

Bangko Sentral ng Pilipinas Deputy Governor Chuchi G. Fonacier earlier said the local financial system’s exposure to Russia is only through the trust department of banks, which did not even reach 1% of the total assets under management of the Philippine banking system.

Tamma Febrian and Willie Tanoto, directors at the Asia-Pacific Financial Institutions of Fitch, said while local banks have limited direct exposures to the conflicted areas, lenders are likely to face “second-order effects on credit and market risks.”

“We expect such pressures to be manageable on the whole for the Philippines’ banking sector, as domestic interest rates remain at an all-time low and rate hikes are likely to be gradual,” they said in an e-mail.

Amid faster inflation due to the war and costlier input costs for businesses, the analysts said growth opportunities will likely be reduced but this is unlikely to drive a sharp increase in loan delinquencies.

“We believe the banks we rate have sufficient profitability and loss absorption capacities to withstand these headwinds under our base case,” they said. — Luz Wendy T. Noble

MacroAsia: Lufthansa Technik’s new hangar starts operation this month

April 6, 2022 | 12:02 am

MACROASIA Corp. said the new hangar of Lufthansa Technik Philippines, Inc. (LTP), its joint venture with Germany’s Lufthansa Technik AG, is expected to be operational this month.

The company also reported a net loss of P150.9 million for 2021, a significant decline from a loss of P1.8 billion a year earlier.

“LTP will complete its facility expansion program through a new multi-use hangar that will be fully constructed by Q1 (first quarter) 2022,” MacroAsia said in its annual report.

“This new hangar will be open for commercial operation by April 2022, providing additional base maintenance capacity for LTP,” it added.

The company said LTP’s maintenance volumes are expected to reach pre-pandemic levels this year.

“Foreign airline clients that have opted to delay their heavy maintenance programs in the midst of the pandemic starting 2020 have been recalling their stowed planes into service,” it noted.

LTP provides aircraft maintenance, repairs and overhaul services at various airports in the country, including Ninoy Aquino International Airport (NAIA), Mactan-Cebu International Airport, Kalibo International Airport, and Puerto Princesa Airport, among others.

“The line maintenance business, which is essentially airport-flight driven will follow the airport volume growth in NAIA, Cebu, Clark, and Davao where LTP operates,” MacroAsia said.

The company noted that LTP has returned to profitability starting August last year.

LTP said last year that it was expecting to finish its $40-million hangar expansion project in Pasay City in February 2022. The new hangar will allow the company to service more aircraft including Airbus A380.

On its net loss last year, MacroAsia said: “The reversal of impairment provisions, together with the share in net earnings of an associate, principally resulted in the decline in reported loss in [2021].”

“The Infanta Nickel Mine generated advanced royalty receipts from a mining operator, justifying the reversal of impairment provision on deferred mine exploration costs amounting to P217 million,” it noted.

“With the agreement that was signed with this mine operator, it is expected that the nickel mine will operate soon, and is expected to provide recurring cash inflow through royalty payments.”

MacroAsia shares closed 0.35% lower at P5.72 apiece on Tuesday. — Arjay L. Balinbin

If introspection had a face

April 6, 2022 | 12:02 am

Encounter-with-myself_3x3_2022 — Encounter with Myself by Mr. S

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CARTOONISH images of a little girl and a dinosaur, their bodies morphed together, are hung on pastel pink walls; at the other end of the gallery, the walls are painted gray and hung with acrylic paintings and watercolor portraits of a brooding young boy.

These are the works of Indonesian pop-surrealist artist Roby Dwi Antono and Filipino pop-surrealist Mr. S (a.k.a. Mark Jeffrey Santos) who are holding simultaneous solo exhibitions, “Intensity, Intimately” and “Reflections” by Mr. S, at Galerie Stephanie.

‘INTENSITY, INTIMATELY’
Mr. Antono’s career accelerated after a major exhibit at the Art Fair Tokyo. According to his artist bio at Galerie Stephanie’s website, Mr. Antono’s works “evoke pulsating emotional depths, fusing the aesthetics of Surrealism and Classical Renaissance imagery to create a contemporary juxtaposition that’s all his own.” Since the artist’s Philippine debut in the gallery in 2016, Mr. Antono has been a mainstay on its roster. He has participated in Art Fair Tokyo (2016, 2018), Art Fair Philippines (2017, 2018), and the recent edition of Discovery Art Fair Frankfurt.

“Intensity, Intimately” is Mr. Antono’s second solo show, focusing on his inclination towards iconic Japanese characters such as the kaiju, a mythical creature similar to Godzilla. The artist presents the kaiju as a mythical creature with a child forming a “parasocial” relationship with TV characters.

Some of the works — Us, We are There Together, Epic Battle and Lonesome Hero — were created using black and white oil pastels on canvas, while the child-like illustrations — such as Hey You!, Don’t be Afraid, and An Asteroid Strike — were done with oil pastel.

‘REFLECTIONS’ BY MR. S
Mr. Santos had a career in video and film before exploring creative work as a visual artist in 2014. His works are described as “steeped in the world of fantasy” and “complete with a dreamlike environment and wide-eyed characters.” Since 2015, Mr. Santos has had four solo exhibitions, and has joined art fairs and group shows in the country and in Taiwan, China, and the United Kingdom.

In “Reflections,” Mr. Santos shows how the pressures of society affect the way we live, how we see ourselves, and how it contributes to our fears.

These messages are depicted through a young boy hiding his face with a mask and facing his inner demons up close. In works such as Encounter with Myself, Mirror Image, and Eye to Eye, the subject finds himself in conflict when trying to appease others.

“Tayong mga tao, iniisip natin masyado yung opinions ng iba (We people tend to think too much about the opinions of others). Sometimes, when we want to do things, we are hindered by those said about us,” Mr. Santos told BusinessWorld at the exhibit’s launch on April 1.

Among his paintings, Mr. Santos favorite piece is Looking Down at My Demons, which he said was where he was able to accomplish incorporating the theory of light and how it behaves in its surroundings. In the painting, the subject holds a lamp and looks down and is confronted by his inner demon.

“…’yung naiisip natin is ’yung opinion sa sarili natin, kasi usually hindi naman ’yon ’yung iniisip nila. (What we often think of are our opinions about ourselves, because others usually do not have the thoughts that we assume they do),” Mr. Santos said.

Mr. Antono’s work showcasing popular TV and comic characters represent heroism and power and are juxtaposed with Mr. Santos’ use of Japanese iconography.

“Intensity, Intimately” and “Reflections” are on view until April 17 at Galerie Stephanie, on the 4^th floor East Wing of Shangri-La Plaza, Mandaluyong. For inquiries, e-mail inquiry.galeriestephanie@gmail.com or call 7940-5726. — Michelle Anne P. Soliman

PHL will fare well in Hanoi despite pandemic — Fernandez

April 6, 2022 | 12:02 am

PHILIPPINE Southeast Asian Games chef de mission Ramon Fernandez has high hopes the country will fare well in the Hanoi meet set on May 12 to 23 despite the challenges brought about by the pandemic.

“All our athletes are ready,” said Mr. Fernandez, a Philippine Sports Commission (PSC) board member, in Tuesday’s online Philippine Sportswriters Association Forum. “I think we prepared well even during the lockdown and some bubble training.”

The basketball legend said the PSC will fund all the members of the 987-strong delegation including 646 athletes who will try to defend the overall crown, if not, finish in the top three in biennial meet.

The country ran away with the overall title after harvesting 149 gold, 117 silver and 121 bronze medals.

Not all medalists though will get to return as host Vietnam has scrapped a lot of sports events where the Filipinos reigned supreme.

But Mr. Fernandez remained adamant that those who remained could duplicate their feat from last time.

“I’m really relying on our podium finishers from 2019 and I would like to believe several, if not all of them, could retain their gold medal and hopefully improve on the silver or bronze they won,” said Mr. Fernandez.

Mr. Fernandez said the first batch of athletes including those from football and kickboxing would leave on May 1 with some following suit the next few days.

The main bulk will fly to Hanoi on May 10, or a day after the national elections.

“Most of our national athletes can vote,” said Mr. Fernandez. — Joey Villar

DoH to pilot colorectal cancer screening program

April 6, 2022 | 12:01 am

Colorectal cancer is the third most common cancer and the fourth leading cause of cancer-related deaths in the country. Yet with early detection, colorectal cancer is one of the most preventable and treatable cancers.

This is why the Department of Health (DoH), in partnership with the World Health Organization, Philippine Society of Gastroenterology (PSG), and Philippine Society of Digestive Endoscopy, will pilot the National Colorectal Cancer Screening Program this year.

To be implemented in line with Republic Act No. 11215 or the National Integrated Cancer Control Act (NICCA), the screening program aims to reduce deaths due to colorectal cancer by promoting early detection through fecal immunochemical test (FIT) and colonoscopy.

The pilot screening sites are Mariano Marcos Memorial Hospital and Medical Center, East Avenue Medical Center, San Lazaro Hospital, Vicente Sotto Memorial Medical Center, Zamboanga City Medical Center, and Our Lady of Lourdes Hospital.

“The DoH National Colorectal Cancer Screening Program will benefit the vulnerable population of Filipinos aged 50 years and older. Those who test positive with FIT should undergo a colonoscopy. The FIT kits will be provided for free while the cost of the colonoscopy can be covered by PhilHealth or our Malasakit Centers,” said Dr. Clarito U. Cairo, Jr., program manager of the National Integrated Cancer Control program, DoH Disease Prevention and Control Bureau, at the opening ceremony of Philippine Digestive Health Week (PDHW) this March.

PDHW and National Colorectal Cancer Awareness Month are celebrated in March.

FIT is a simple test that can be performed at home. Recommended yearly, it detects hidden blood in the stool, which can be an early sign of cancer. However, FIT cannot diagnose colorectal cancer. As such, individuals with positive FIT results should schedule a colonoscopy with a gastroenterologist.

A colonoscopy is an exam in which a long, flexible tube (colonoscope) is inserted into the rectum. A tiny video camera at the tip of the tube allows the gastroenterologist to view the inside of the entire colon and rectum to check for changes or abnormalities.

The UK National Health Service added that one is usually awake during a colonoscopy, and medicine will be offered to make the person going through the test more comfortable.

“Polyps are abnormal tissue growths in the colon and rectum. While most are benign or harmless, some polyps can become cancerous. It takes many years for polyps to develop into colorectal cancer, which provides an opportunity for cancer prevention through polypectomy during colonoscopy. The gastroenterologist can safely remove polyps which are sent for histopathologic analysis to confirm whether these are cancerous or have the potential to transform into cancer,” said internist-gastroenterologist Dr. Dulcinea Balce-Santos, PSG public relations officer.

She added that repeat colonoscopy for surveillance of polyp recurrence is recommended based on the findings of the initial colonoscopy. Regular screening through FIT and colonoscopy are powerful tools in the prevention, early detection, and treatment of early-stage colorectal cancer.

Dr. Balce-Santos stressed that individuals can lower their risk for colorectal cancer by maintaining a healthy weight; engaging in regular physical activity; eating a diet rich in vegetables, fruits, and whole grains, and low in red and processed meats; and refraining from drinking alcohol and cigarette smoking.

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP), which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are at the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

UnionBank prices stock rights offering at P64.81

April 6, 2022 | 12:01 am

UNION BANK of the Philippines, Inc. (UnionBank) has set the price for its stock rights offering (SRO) from which it eyes to raise P40 billion to fund its acquisition of the local retail arm of Citigroup, Inc.

In a filing with the local bourse on Tuesday, the Aboitiz-led lender said that 617.188 million shares will be offered at P64.81 apiece.

“The offer price was determined based on the 15-day volume-weighted average price of the bank’s common shares traded on the exchange, subject to a discount of 30%,” UnionBank said.

The offering will run from April 25 to May 6. Meanwhile, the tentative listing date for the shares is on May 16.

UnionBank earlier said their key shareholders such as Aboitiz Equity Ventures, Insular Life Assurance and Social Security System, are fully committed to the stock sale.

The lender has said the P55-billion acquisition deal with Citi could boost the local lender’s retail banking industry.

The acquisition deal also includes Citi’s real estate interests in relation to Citibank Square in Eastwood, three full-service bank branches, five wealth centers and two bank branch lites.

UnionBank’s net income increased by 9% to P12.6 billion in 2021 from a year earlier amid higher revenues and the decline in loan loss provisions.

Its shares closed at P101.50 apiece, gaining P2.20 or 2.22% from the previous day’s finish. — Luz Wendy T. Noble

SM Prime sets interest rate for retail bonds

April 6, 2022 | 12:01 am

SM Prime Holdings, Inc. announced on Tuesday that it set the interest rates for its retail bonds, the fourth tranche of its P100-billion shelf registration.

“SM Prime will use the proceeds of these latest retail bonds issuance to pursue the expansion plans set for the Company’s property portfolios, including malls, residential developments, offices, and hotels, which will drive further growth to the Company as well as to the communities we serve,” SM Prime Chief Finance Officer John Nai Peng C. Ong said in a company disclosure.

The interest rate for SM Prime’s peso-denominated Series P, five-year retail bond is set at 5.6141% due in 2027; Series Q, seven-year retail bond at 6.1175% due in 2029; and Series R, 10-year retail bond at 6.5432% due in 2032.

SM Prime said it issued an aggregate principal amount of P15 billion of the Series P, Q and R bonds, with an oversubscription option of an additional P15 billion.

The company tapped BDO Capital & Investment Corp. and China Bank Capital Corp. to be the joint issue managers, as well as joint bookrunners and joint lead underwriters together with BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp.

The retail bonds will be offered from April 7 to 13 to investors and are set to be issued on April 22, following the receipt of the permit to sell from the Securities and Exchange Commission (SEC).

The proposed issuance is the fourth tranche under the company’s P100-billion shelf registration of fixed rate bonds approved by the SEC in 2020.

SM Prime said similar to its previous bond issues, the Series P, Q and R bonds have been rated PRS Aaa by Philippine Rating Services Corp. (PhilRatings).

“A rating of PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong,” it said.

In 2021, the company’s consolidated net income grew 21% to P21.8 billion, of which P6.2 billion was recorded in the fourth quarter.

At the stock exchange, SM Prime shares dropped 0.39% or 15 centavos to finish at P38 apiece. — Luisa Maria Jacinta C. Jocson

Arts & Culture (04/06/22)

April 6, 2022 | 12:01 am

Twisted, the 25th Anniversary Edition by Jessica Zafra

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25^th anniversary edition of Zafra’s Twisted out

THE 1990s were the decade of alternative music and grunge fashion, massacre movies, and film fest scandals, the mainstreaming of gay speak, and the rise of the OFW-powered economy, and we read all about these in Jessica Zafra’s newspaper column, “Twisted.” Sharp, irreverent, sometimes furious, and often funny, “Twisted” gave voice to a generation basking in the freedom of the post-EDSA, post-Cold War era. These columns were collected in a series of books that weren’t just bestsellers: they were the books that friends borrowed and never returned, that you mourned in the wake of Typhoon Ondoy. Now, De La Salle Publishing House presents Twisted, the 25th Anniversary Edition by Jessica Zafra. Twisted 25 is a selection of the most memorable essays from the first three Twisted books, including A Simple Proposal for World Domination, Deadma 101, and The Purple Prose of Baguio. Signed copies of Twisted 25 are available on Shopee, along with limited edition Twisted 25 notebooks, tote bags, T-shirts, and gift boxes.

Nayong Pilipino presents virtual exhibits

THE NAYONG Pilipino Foundation’s (NPF) collection of more than 3,000 artifacts documenting the Philippines’ history and culture will be showcased online through the Nayong Pilipino Foundation Virtual Museum Project. This year, the project will consist of six digital exhibitions which will go beyond flat images and short captions, such as videos and three-dimensional imaging. The first virtual exhibition of the year is entitled “Tansô,” and shows how brass became widely used in tools, ornamentation, decorations, containers, and utilitarian items in the Philippines and how the traditions of casting and forging this metal developed highly technical processes and have produced the most intricate pieces of work or objects. The exhibition will run from April 4 to 17 on NPF’s Instagram accounts (@AtingNayon and @nayongpilipino.museo) and NPF’s official Facebook page (www.facebook.com/nayongpilipinoofficial). The NPF collection ranges from intricate beaded jewelry to weaponry for hunting and warfare, to ritualistic artifacts and includes musical instruments, vessels, funerary objects, and textiles. The agency hopes to eventually showcase them in a proposed Cultural Park and Creative Hub in Parañaque City. The Cultural Park will include a museum to house the permanent collection of artifacts from the different indigenous peoples of Luzon, Visayas, and Mindanao.

CCP honors pandemic casualties with special show

THE CULTURAL Center of the Philippines (CCP), in partnership with the Concerned Artists of the Philippines, leads various communities in understanding and expressing grief for those who have passed on since the start of the COVID-19 pandemic, through Damay at Dangal: Hanggang sa Muli on April 9. The event will be held simultaneously on-site at the CCP Ramp and Main Theater Lobby, and livestreamed through the Facebook pages of the CCP, the CCP Intertextual Division, and Damay at Dangal. The event will have a pre-show at 3 p.m. with the presentation of Toym Imao’s installation at the CCP Ramp. The installation, which serves as an “altar,” will remain at the Ramp until April 10. Families, friends, and colleagues are encouraged to bring memorabilia of their departed loved ones, light candles, offer flowers, prayers, and mementos at the art installation. There will also be video presentation of the Pagbabasa ng Pangalan ng Mga Yumao (Reading of the Names of the Departed). Selected CCP officials and employees, as well as members of the Concerned Artists of the Philippines, artists, and personalities such as Karen Davila, Rico Hizon, Agot Isidro, Nanding Josef, Joel Lamangan, Lualhati Bautista, Gina Alajar, Ricky Lee, and Enchong Dee, among others, will take the lead in reading the names of the departed. The main program, to be directed by Krix San Gabriel, will start at 5 p.m. with prayers, a performance by the Philippine Madrigal Singers, biblical readings, and eulogies. It will be hosted by Iza Calzado and Atom Araullo.

Museum conducts history of food event

THE AYALA Museum will present an online event involving the tasting and exploration of historical food called “Unboxing Refreshments from the Age of Red Heels & Velvet Slippers” on April 9, 3 p.m. It will be led by food historian Felice Prudente-Sta. Maria. The online event will be a trip back to the Manila of the 1820s through 1850s as depicted in the Tipos del Pais paintings from the Ayala Museum’s exhibit, “Intertwined: Transpacific Transcultural Philippines”. Guests will have an exploration kit delivered that includes culinary items from that time period such as fruit jam, bottled carabao milk, canned black gulaman (jelly), biscuits, pancit (noodles), chia seeds, and flavored rice. To register, visit ayalamuseum.org/obe-redheels-lecture. Tickets are priced at P3,000. For more information, visit www.facebook.com/ayalamuseum. Participation is restricted to within Metro Manila due to the sensitive food and drinks involved.

Salcedo Auctions holds Westendorp show

SALCEDO Auctions presents “Illuminations: Canvas Editions” by Betsy Westendorp on private view from April 12 to 30. Betsy Westendorp is primarily known for her large-scale works, flowers, and her portraits. Salcedo Auctions is located at the NEX Tower Podium Level, 6786 Ayala Avenue, Makati City. For inquiries, contact 0917-825-7449, 0917-107-5581, or visit https://salcedoauctions.com/private-view.

So eyes a shot at classical crown

April 6, 2022 | 12:01 am

PHILIPPINE-BORN American Wesley So vowed to make a serious bid in the next World Chess Championship cycle with hopes of earning a shot at the world classical crown.

“I am only 28 and I’m hoping that next year or in a couple of years, I will get a chance to play in the Candidates,” said Mr. So after he topped the third leg of the FIDE Grand Prix in Berlin, Germany on Monday.

The two-time United States titlist missed the cut in the current cycle after ending up only third in the overall Grand Prix race that staked just two spots to the Candidates Tournament slated for June 16 to July 7 in Madrid, Spain. The winner of the Candidates gets a crack at the classical title of Magnus Carlsen.

American Hikaru Nakamura and Hungarian Richard Rapport took the two berths with a top two finish in the Grand Prix.

There was one other way for Mr. So to claim the one and only remaining slot to the Candidates — to finish with the best rating among the non-qualifiers before the month ends.

But he may have given on that too as he is just third at No. 7 in the live rating with 2773 behind World No. 2 Ding Liren of China with 2810.8 and World No. 5 Levon Aronian of the US with a 2779.2.

“The last time I played, I was very inexperienced and finished second to last, so I think if you qualify, you have to be ready to fight for first place,” said Mr. So.

Mr. So though consoled himself with a title the third leg of the FIDE Grand Prix where he bested Mr. Nakamura, 2.5-1.5, that was decided by the former’s win in the second rapid tie-breaker. — Joey Villar

World Bank GDP growth forecasts for select East Asia and Pacific economies

April 6, 2022 | 12:00 am

THE WORLD BANK trimmed its growth forecast for the Philippines to 5.7% in 2022 due to the impact of the war in Ukraine, warning that growth could further slow to 4.9% if conditions worsen. Read the full story.

Headline inflation rates in the Philippines

April 6, 2022 | 12:00 am

PHILIPPINE INFLATION climbed to a six-month high in March as food, utilities, and transport costs rose due to the spike in global oil prices after Russia’s invasion of Ukraine. Read the full story.