RAM Ratings has reaffirmed the A1/P1 ratings of RHB Capital Berhad’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.
RHB Capital is an investment-holding company that mainly relies on dividend income from its core subsidiary, RHB Bank Berhad; its other key subsidiaries include RHB Investment Bank Berhad, RHB Islamic Bank Berhad, a wholly owned subsidiary of RHB Bank and RHB Insurance Berhad - collectively known as “RHB Capital Group”. RHB Bank, RHB Islamic and RHB Investment carry AA2/Stable/P1 ratings from RAM Ratings.
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.
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 as well as OSK Holdings’ major shareholders for the potential merger of their businesses.
OSK Investment'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 had been put on hold pending a regulatory review on the single-shareholding limit of Indonesian banks.
We opine that the merger, if successful, will see RHB Investment’s institutionally focused business being complemented by OSK Investment’s predominantly retail-oriented stockbroking operations and forming the largest domestic stockbroking firm by both trading volume and value. -- Reuters
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.
RHB Capital is an investment-holding company that mainly relies on dividend income from its core subsidiary, RHB Bank Berhad; its other key subsidiaries include RHB Investment Bank Berhad, RHB Islamic Bank Berhad, a wholly owned subsidiary of RHB Bank and RHB Insurance Berhad - collectively known as “RHB Capital Group”. RHB Bank, RHB Islamic and RHB Investment carry AA2/Stable/P1 ratings from RAM Ratings.
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.
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 as well as OSK Holdings’ major shareholders for the potential merger of their businesses.
OSK Investment'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 had been put on hold pending a regulatory review on the single-shareholding limit of Indonesian banks.
We opine that the merger, if successful, will see RHB Investment’s institutionally focused business being complemented by OSK Investment’s predominantly retail-oriented stockbroking operations and forming the largest domestic stockbroking firm by both trading volume and value. -- Reuters
