Moody’s affirms RHB’s ratings with a stable outlook

KUALA LUMPUR: Moody’s Investors Service has affirmed RHB Bank Bhd’s deposit and senior unsecured debt ratings at A3/ P- 2 and upgraded the bank’s baseline credit assessment (BCA) and adjusted BCA to baa2 from baa3, with stable outlook.

The rating agency also a f firmed RHB’s senior unsecured MTN programme ratings at ( P) A3/( P) P- 2 and counterparty risk assessments at A3(cr)/P-2(cr).

“RHB’s A3 deposit and senior debt ratings reflect the bank’s BCA of baa2 and a twonotch uplift owing to Moody’s assumption of a very high likelihood of support from the

RHB’s A3 deposit and senior debt ratings reflect the bank’s BCA of baa2 and a two-notch uplift owing to Moody’s assumption of a very high likelihood of support from the government of Malaysia (A3 stable), if needed.

government of Malaysia (A3 stable), if needed.

“RHB’s gross non-performing loans ratio has stabilised at 2.3 per cent at the end of March 2018. This result was mostly unchanged from the level seen last year and Moody’s expects stable asset risk performance in 2018-2019,” it said in a statement yesterday.

Moody’s said RHB’s key weakness in the corporate loan book – as seen by its exposure

to oil and gas- related borrowers – is showing signs of normalisation.

At the same time, it said the bank was more exposed to lowerincome households in Malaysia when compared with other large domestic banks, a risk that Moody’s has captured in RHB’s BCA. — Bernama