Fitch ups Alliance Bank to D

Fitch Ratings said it upgraded the individual rating of Alliance Bank Malaysia Bhd. to D from D/E and affirmed its support rating at 3.

The upgrade reflects the improvement in Alliance Bank's solvency ratios as seen in the reduced non-performing loans level, much stronger provisioning and generally stable capitalization, Fitch said. The agency noted the increased efforts made by the newly installed management team at tackling asset quality problems.

The agency said the bank's longer-term constraints on profitability could emanate from rising competition and weaker operating leverage given its smaller-sized operations.

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