Fitch assigns AmBank shares BB

Fitch Ratings said it assigned an expected long-term rating of BB to AmBank (M) Bhd.'s proposed issue of up to $200 million of non-cumulative non-convertible guaranteed preference shares.

The agency said this rating is two notches lower than AmBank's long-term debt rating of BBB-.

Fitch noted that the issuing entity, AMBB Capital (L) Ltd., is a special purpose vehicle and a wholly owned subsidiary of AmBank, but the entire issue is guaranteed on a subordinated basis by the parent bank.

Fitch also noted that the preference shares that are being issued are perpetual securities and have no final redemption date. However, these shares may be redeemable at the option of the issuer under certain circumstances such as due to changes in the Malaysian tax laws.

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