S&P: RHB Bank view to negative

Standard & Poor’s said it revised the outlook on the long-term issuer credit ratings on RHB Bank Bhd. and RHB Investment Bank Bhd. to negative from developing.

The agency also said it affirmed the BBB+ and A-2 issuer credit ratings and axA+ and axA-1 Asean regional scale ratings on the two Malaysian banks.

S&P also said it affirmed the A- and A-2 issuer credit ratings and axAA and axA-1 Asean regional scale ratings on CIMB Bank Bhd. and CIMB Investment Bank Bhd.

The outlook remains stable.

The actions follow the recent announcement that CIMB Group Holdings Bhd., RHB Capital Bhd. and Malaysia Building Society Bhd. have ceased discussions on their proposed three-way merger, the agency said.

The proposed merger could have improved RHB’s business position and systemic importance given the enlarged franchise after the merger, S&P said.

The cessation of merger discussions has removed this rating upside, the agency said.

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