MANILA, Philippines - International credit ratings agency Moody's Investors Service on Tuesday said it has a stable outlook on the banking systems of the Philippines and the rest of Southeast Asia.

Moody's said its outlook is partly influenced by improving economic conditions of countries in the region. It added that the debt crisis in the Eurozone is not expected to harm the region's banking sector.

"With the exception of Vietnam and Cambodia, our South East Asian banking system outlooks are stable," said Deborah Schuler, senior vice president and regional credit officer for Asia Pacific financial institutions at Moody's.

"The region's banks are well positioned to cope with the Basel III capital and liquidity requirements, thanks to their strong capital levels, traditional banking franchises and customer deposit funded loan portfolios," Schuler added.  

Like that of its neighbors, the Philippine banking system is registering improving assets, the Bangko Sentral ng Pilipinas said.

The BSP said earlier that resources of the country's banking system reached P6.42 trillion as of the first quarter, higher by 9.5% compared to the P5.86 trillion registered in the same period a year ago.

Tom Byrne, senior vice president and regional credit officer for Moody's sovereign risk group, said in the same statement that besides the banking sector, the region's economies are also seen to do well despite the Eurozone debt woes. 

"Sovereign credit fundamentals in the region have withstood the global turbulence of the past two years," Byrne said. 

"External positions are stronger now, reflecting a robust rebound in exports and resulting in record levels of official foreign exchange reserves for most countries in recent months."