Fitch affirms Hong Leong Bank

Fitch Ratings said it affirmed all the ratings of Hong Leong Bank Bhd., including its long-term issuer default rating at BBB+, short-term rating at F2, individual rating at C, support rating at 3 and subordinated debt rating at BBB.

The outlook is stable.

The rating reflects the bank's strong balance sheet and stable profitability while its support rating reflects a moderate probability of government support for the bank in the unlikely event of need, given its status as a mid-sized bank in the Malaysian banking system and the government's past record of supporting distressed financial institutions, Fitch said.

The bank's capital ratios were reduced due to loan expansion and its share buyback program, the agency said, but it remained above industry average.

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