MOODY'S ASSIGNS (P)A3 RATING TO MAYBANK'S SAMURAI SHELF REGISTRATION

KUALA LUMPUR, 27 Jan  -- Moody's Investors Service has assigned a (P)A3 foreign currency senior unsecured rating to the samurai shelf registration of Malayan Banking Bhd (Maybank).

Moody’s said Maybank's A3 long-term senior unsecured ratings are premised on its a3 Baseline Credit Assessment (BCA).

“The ratings do not benefit from any uplift from government support, given that the bank's BCA is already at the same level as the Government of Malaysia's rating (A3 stable),” it said in a statement, today.

Moody’s said Maybank's a3 BCA takes into consideration risks to its asset quality because of the economic impact of the COVID-19 pandemic in its key operating markets.

“The bank's strong capital and traditional strengths of sound funding and liquidity supported by its dominant franchise in Malaysia will offset the strain,” it said.

It said the shelf registration's rating is positioned at the same level as Maybank's existing senior unsecured debt rating of A3.

“The shelf registration was filed under the Japanese shelf registration process in June 2020.

“The total amount of new securities that can be issued under the shelf registration is JPY500 billion,” it added.

Moody’s added that the rating on the shelf registration is in line with Maybank's foreign currency deposit rating, which is at the same level as Malaysia's A3 sovereign rating.

“Given the stable outlook on the sovereign rating, an upgrade of Maybank's long-term ratings is unlikely in the next 12-18 months,” it said.

It added that Maybank's long-term ratings and the rating on the shelf registration can be downgraded if the bank's standalone credit profile materially deteriorates.

As of Sept 30, 2021, Maybank reported total assets of RM879 billion.

-- BERNAMA