TEXT-Fitch Rates Maybank's Subordinated Notes Final 'BBB+'

(The following was released by the rating agency)

SINGAPORE, September 20 (Fitch) Fitch Ratings has assigned Malayan Banking Berhad's (Maybank) USD800m 3.25% fixed rate subordinated notes due 2022, issued under the bank's USD5bn multicurrency medium-term note programme, a final rating of 'BBB+'.

This follows the completion of the notes issue, as well as the receipt of final documents conforming to information previously received. The final rating is same as the expected rating assigned on 13 September 2012.

The notes are rated one notch below Maybank's 'a-' Viability Rating to reflect their subordinated status and the absence of any going-concern loss-absorption mechanism. This is in accordance with Fitch's criteria on rating bank regulatory capital and similar securities.

The subordinated notes represent direct, subordinated and unsecured obligations of Maybank, and rank equally with the bank's other Lower Tier 2 capital securities. The subordinated notes rank below claims by Maybank's depositors and senior creditors, but senior to holders of the bank's share capital and Tier 1 capital securities.

While qualifying as regulatory capital, the notes are not intended to contain any going-concern loss absorption features (such as coupon deferral under specified conditions), which would otherwise have resulted in wider notching for the issue rating.

The proceeds are to be used for Maybank's general corporate purposes and to augment its Tier 2 capital. The notes qualify as Lower Tier 2 capital as per the Bank Negara Malaysia's guidelines and are eligible for Basel III transitional treatment.

For more details on Maybank's ratings and credit profile, see "Fitch Affirms Maybank at 'A-'; Outlook Stable", dated 26 February 2012, and Maybank's full rating report, dated 7 March 2012, available at www.fitchratings.com.

Maybank's other ratings are as follows:

- Long-Term Foreign-Currency Issuer Default Rating 'A-'; Outlook Stable

- Long-Term Local-Currency Issuer Default Rating 'A-'; Outlook Stable

- Viability Rating 'a-'

- Support Rating '2' - Support Rating Floor 'BBB'