Thursday July 5, 2012
MARC affirms AAA/MARC-1 ratings on Maybank
In a statement here yesterday, MARC said the ratings were underpinned by Maybank’s strong and sustainable domestic banking franchise, stable asset quality and funding structure, good recurring earnings generation and prudent capitalisation.
“The ratings reflect Maybank’s stand-alone credit profile without specific uplift for potential systemic support, although MARC opines that there is an extremely high likelihood that support would be forthcoming for its banking units from the government should a need arise given its systemic importance to the domestic financial system,” it said.
Maybank is Malaysia’s largest bank by asset; its banking assets accounted for a significant 25.5% of the Malaysian banking industry assets as at end-March 2012.
It is also the fourth largest bank in South-East Asia, with a good foothold in Singapore which accounted for 29.4% of the bank’s loan book at end- March 2012.
Maybank is the listed operating financial holding company of the Maybank Group, the country’s largest financial services group with operations in banking, insurance, takaful, and securities broking.
MARC said the ratings also took into account the consolidated credit profile of Maybank and its operating subsidiaries in light of the franchise inter-linkages between the parent and its subsidiaries, and between the group’s banking and non-banking operations. — Bernama
“It also takes into account the extent that capital support may be required of the holding company should there be a deterioration in the credit strength of operating subsidiaries,” it said. — Bernama
The stable outlook incorporates MARC’s view that Maybank would be able to maintain its favourable financial profile on the expectation of manageable asset quality and margin pressures, balanced against its substantial core profitability and strong capital levels. — Bernama