Fitch lifts Mexim to stable

Fitch Ratings said it revised Export Import Bank of Malaysia Bhd.’s (Mexim) outlook to stable from negative and affirmed its long-term foreign-currency issuer default rating at A- and senior unsecured notes rating at A-.

The outlook revision follows the revision of Malaysia’s outlook to stable from negative, Fitch said.

The bank’s ratings are equalized with the ratings on the Malaysian sovereign, the agency said.

The ratings are underpinned by an expectation of an extremely high probability of extraordinary state support for the bank during times of need, Fitch said.

This expectation stems from the government’s 100% ownership of the bank and Mexim’s unique policy role to support and develop the export-oriented sector, which is an important driver of Malaysia’s economy, the agency said.

The bank’s senior notes are rated at the same level as its long-term issuer default rating because the notes constitute direct, unsubordinated and unsecured obligations of the bank and rank equally with all its other unsecured and unsubordinated obligations, Fitch said.

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