RAM Ratings has reaffirmed the A1/P1 ratings of RHB Capital Bhd’s RM1.1 billion Commercial Papers/Medium-Term Notes (CP/MTN) Programme (2009/2016) and RM150 million CP/MTN Programme (2008/2015).
At the same time, the A1 rating of the company’s RM350 million Fixed-Rate Bonds (2006/2012) has also been reaffirmed. All the long-term ratings have a stable outlook, said RAM Ratings in a statement.
RHB Capital is an investment-holding company that mainly relies on dividend income from its core subsidiary, RHB Bank Bhd. Its other key subsidiaries include RHB Investment Bank Bhd, RHB Islamic Bank Bhd (a wholly-owned subsidiary of RHB Bank) and RHB Insurance Bhd, collectively known as "RHB Capital Group" or "the Group".
RHB Bank, RHB Islamic and RHB Investment carry AA2/Stable/P1 ratings from RAM Ratings.
RAM Ratings said the ratings reflect the improved profit performance of RHB Capital as a Group, as well as the synergistic benefits that have been realised since its transformation into a universal-banking group.
The ratings also take into account RHB Capital’s relatively higher gearing and double-leverage ratios as a financial services holding company. It noted that RHB Capital seeks to expand its presence in ASEAN.
The Group is now in negotiations with OSK Investment Bank Berhad and the latter’s holding company, OSK Holdings Berhad (OSK Holdings) as well as OSK Holdings' major shareholders for the potential merger of their businesses, it said.
RAM Ratings said OSK IB's presence in ASEAN will facilitate RHB Capital’s regional aspirations, which have been rather stagnant since its proposed acquisition of Indonesia’s PT Bank Mestika Dharma was put on hold, pending a regulatory review of the single-shareholding limit of Indonesian banks.
It is of the opinion that the merger, if successful, will see RHB Investment’s institutionally focused business being complemented by OSK IB’s predominantly retail-oriented stockbroking operations, and forming the largest domestic stockbroking firm by both trading volume and value, it added.
Separately, RAM Ratings has reaffirmed RHB Investment Bank Bhd’s respective long and short-term financial institution ratings, at AA2 and P1.
At the same time, the AA3 rating of the debt securities issued under the Bank’s RM245 million Subordinated Notes Programme has also been reaffirmed, it said. Both long-term ratings have a stable outlook, it added. -- Bernama
At the same time, the A1 rating of the company’s RM350 million Fixed-Rate Bonds (2006/2012) has also been reaffirmed. All the long-term ratings have a stable outlook, said RAM Ratings in a statement.
RHB Capital is an investment-holding company that mainly relies on dividend income from its core subsidiary, RHB Bank Bhd. Its other key subsidiaries include RHB Investment Bank Bhd, RHB Islamic Bank Bhd (a wholly-owned subsidiary of RHB Bank) and RHB Insurance Bhd, collectively known as "RHB Capital Group" or "the Group".
RHB Bank, RHB Islamic and RHB Investment carry AA2/Stable/P1 ratings from RAM Ratings.
RAM Ratings said the ratings reflect the improved profit performance of RHB Capital as a Group, as well as the synergistic benefits that have been realised since its transformation into a universal-banking group.
The ratings also take into account RHB Capital’s relatively higher gearing and double-leverage ratios as a financial services holding company. It noted that RHB Capital seeks to expand its presence in ASEAN.
The Group is now in negotiations with OSK Investment Bank Berhad and the latter’s holding company, OSK Holdings Berhad (OSK Holdings) as well as OSK Holdings' major shareholders for the potential merger of their businesses, it said.
RAM Ratings said OSK IB's presence in ASEAN will facilitate RHB Capital’s regional aspirations, which have been rather stagnant since its proposed acquisition of Indonesia’s PT Bank Mestika Dharma was put on hold, pending a regulatory review of the single-shareholding limit of Indonesian banks.
It is of the opinion that the merger, if successful, will see RHB Investment’s institutionally focused business being complemented by OSK IB’s predominantly retail-oriented stockbroking operations, and forming the largest domestic stockbroking firm by both trading volume and value, it added.
Separately, RAM Ratings has reaffirmed RHB Investment Bank Bhd’s respective long and short-term financial institution ratings, at AA2 and P1.
At the same time, the AA3 rating of the debt securities issued under the Bank’s RM245 million Subordinated Notes Programme has also been reaffirmed, it said. Both long-term ratings have a stable outlook, it added. -- Bernama
