Moody's affirms Maybank

Moody's Investors Service said it affirmed Maybank's A3/P-1 deposit ratings, Baa1 subordinated debt rating and C bank financial strength rating with stable outlooks.

Moody's said these actions follow a recent announcement of the proposed acquisition of a 74.24% stake in Malaysia National Insurance Holdings Bhd. by Mayban Fortis - Maybank's insurance joint venture with Fortis. Malaysia National Insurance Holding's major shareholders are Permodalan Nasional Bhd. and Amanah Raya Nominees Sdn. Bhd.-Skim Amanah Saham Bumiputera.

The rating agency believes that the bank's strong franchise, and sound financial condition will enable it to absorb the cost of the transaction. As a percentage of the Maybank group, Malaysia National Insurance constitutes an estimated 5% of total assets and 3% of net profit.

In affirming the ratings, the rating agency also recognized the potential for the acquisition to strengthen Maybank's insurance and Islamic insurance operations. Malaysia National Insurance's agency force with extensive businesses in insurance and Islamic insurance should complement Mayban Fortis' well-regarded bank assurance operation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.