KUALA LUMPUR, Oct 16 — Moody’s Investors Service has affirmed all ratings and assessments of AmBank (M) Bhd, with a stable outlook.
It has also affirmed the A3/P-2 local and foreign currency counterparty risk ratings on Ambank.
“AmBank’s baseline credit assessment (BCA) and adjusted BCA of baa3 reflect its stable solvency position, particularly its improved capitalisation and asset quality since 2011.
“The BCA also reflects the bank’s modest liquidity and funding, a result of its modest domestic franchise.”
“The bank’s capitalisation remained robust, despite some mild weakening from asset growth,” said Moody’s in a statement.
It also said that the bank’s stabilising profitability would help support internal capital generation and stable capital levels in 2018-2019.
Moody’s added that AmBank’s deposit and senior unsecured ratings could be upgraded if Malaysia’s A3 sovereign rating was upgraded, provided the bank maintained strong standalone financial metrics.
“The BCA of baa3 could be upgraded if the bank further improves its capital adequacy and funding while maintaining stable asset quality metrics,” the rating agency added.
Nevertheless, Moody said AmBank’s BCA and, subsequently its ratings, could be downgraded if the bank engaged in aggressive organic expansion or acquisitions that significantly weaken its risk profile, competition among banks intensify or the bank’s operating environment weakens significantly. — Bernama
Source: The Malay Mail Online