Moody's upgrades AmBank

Moody's Investors Service said it upgraded AmBank (M) Bhd.'s foreign-currency senior unsecured debt and long-term foreign-currency deposit rating to A3 from Baa1.

Moody's also said it upgraded AmBank's baseline credit assessment and adjusted baseline credit assessment to Baa2 from Baa3.

The agency also said it affirmed AmBank's short-term deposit ratings at P-2, counterparty risk assessments at A3(cr)/P-2(cr) and counterparty risk ratings at A3/P-2.

The outlook is stable.

The upgrades reflect the bank's successful de-risking of the balance sheet since 2015, which resulted in slower impaired loan formation, Moody's said.

The de-risking has resulted in improved asset quality and stable capitalization amid challenging operating conditions in Malaysia, the agency explained.

Moody's said it expects the bank's core profit to remain stable through 2020, driven by its continued tight cost controls and steady revenue growth, offset by normalizing net credit costs.

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