Fitch: Maybank unchanged

Fitch Ratings said it believes there will be no ratings impact on Malayan Banking Bhd. (Maybank) following its proposed acquisition of Kim Eng Holdings Ltd.

This reflects a view that the deal is unlikely to threaten the bank's credit profile, which remains supported by its steady performance and dominant franchise, Fitch said.

The consideration for Kim Eng is S$1.79 billion. On balance, the impact can be moderated by the bank's steady earnings and dividend reinvestment plan, the agency said.

Moreover, the bank indicated it may raise equity, debt or a combination of both to fund future growth, which would further mitigate the pressure on capital arising from the acquisition, Fitch added.

The proposed deal is consistent with its plans to develop a pan-Asean financial services platform and expand the reach of its investment banking and equities platform in the region, the agency said.

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