RPT-Fitch rates Maybank's floating rate notes 'A-(EXP)'
(Repeat for additional subscribers)
Sept 12 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned Malayan Banking Berhad's (Maybank) proposed HKD-denominated floating rate notes an expected rating of 'A-(EXP)'. The notes will be issued under Maybank's USD5bn multi-currency medium-term note programme.
The final rating is subject to the receipt of final documentation conforming to information already received.
Key Rating Drivers
The notes are rated at the same level as Maybank's 'A-' Long-Term Foreign-Currency Issuer Default Rating (IDR) as they constitute direct, unconditional, unsubordinated and unsecured obligations of Maybank, and hence rank equally with all of its other unsecured and unsubordinated obligations. The proceeds from the notes will be used for Maybank's working capital, general banking and other corporate purposes.
Maybank's IDRs are driven by its intrinsic strength as underlined by its 'a-' Viability Rating. In July 2013, Fitch revised Maybank's Outlook to Negative to reflect the likely adverse impact on its risk profile in light of the sovereign's weakening risk profile. This is because of the bank's significant exposure to the financial health of the government, as well as to the domestic economy and financial markets. Further, the bank's credit profile may be pressured by growing risks in the domestic operating environment, such as rising household debt and property prices.
A change in Maybank's Foreign-Currency IDR, presently on a Negative Outlook, will have a rating impact on the notes. For more details on Maybank's ratings and credit profile, please see "Fitch Revises MEXIM's and Maybank's Outlook to Negative; Affirms IDRs", dated 31 July 2013, and Maybank's full rating report, dated 5 February 2013, available at www.fitchratings.com.
Maybank's other ratings are as follows:
- Long-Term Foreign-Currency IDR 'A-'; Outlook Negative
- Long-Term Local-Currency IDR 'A-'; Outlook Negative
- Viability Rating 'a-'
- Support Rating '2'
- Support Rating Floor 'BBB'
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