Moody's may cut nine Malaysian banks

Moody's Investors Service said it placed the deposit and debt ratings of nine Malaysian banks on review for possible downgrade.

The review of their debt and deposit ratings will look at the extent to which Malaysia's ability to provide support to its banking system, if needed, is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis, Moody's said.

As the financial crisis continues, the capacity of a country and its central bank to support its banks converges with, and is increasingly constrained by, the government's own debt capacity, the agency said.

AmBank Bhd's foreign-currency long-term and short-term deposit ratings of Baa2/prime-3 and preference stock rating of Ba2 were placed on review for possible downgrade. Its bank financial strength rating of D- is unaffected and carries a stable outlook.

CIMB Bank Bhd's foreign-currency long-term and short-term deposit ratings of A3/prime-1, foreign-currency subordinated debt rating of Baa1 and foreign-currency preference stock rating of Baa3 were placed on review for possible downgrade. Its bank financial strength rating of D+ is unaffected and carries a stable outlook.

CIMB Investment Bank Bhd's local-currency long-term and short-term issuer ratings of A3/prime-1 and foreign-currency long-term and short-term issuer ratings of A3/prime-1 were placed on review for possible downgrade.

EON Bank Bhd's foreign-currency long-term and short-term deposit ratings of Baa2/prime-3 were placed on review for possible downgrade. Its bank financial strength rating of D is unaffected and carries a stable outlook.

Hong Leong Bank Bhd's local-currency long-term and short-term deposit ratings of A2/prime-1, foreign-currency long-term and short-term deposit ratings of A3/prime-1 and foreign-currency subordinated debt rating of A3 were placed on review for possible downgrade. Its bank financial strength rating of C- is unaffected and carries a stable outlook.

HSBC Bank Malaysia Bhd's local-currency long-term deposit rating of Aa3 was placed on review for possible downgrade. Its bank financial strength rating of C-, local-currency and foreign-currency short-term deposit ratings of prime-1 and foreign-currency long-term deposit rating of A3 are unaffected. The outlook is stable.

Malayan Banking Bhd's local-currency long-term deposit rating of A1, foreign-currency subordinated debt rating of A3 and foreign-currency tier 1 capital securities rating of A3 were placed on review for possible downgrade. Its bank financial strength rating of C is unaffected and continues to carry a negative outlook. Local-currency and foreign-currency short-term deposit ratings of prime-1 and foreign-currency long-term deposit rating of A3 are unaffected. The outlook is stable.

Public Bank Bhd's local-currency long-term deposit rating of A1, foreign-currency subordinated debt rating of A3 and foreign-currency preference stock rating of A3 were placed on review for possible downgrade. Its bank financial strength rating of C, local-currency and foreign-currency short-term deposit ratings of prime-1 and foreign-currency long-term deposit rating of A3 are unaffected. The outlook is stable.

RHB Bank Bhd's foreign-currency long-term and short-term deposit ratings of A3/prime-1 were placed on review for possible downgrade. Its bank financial strength rating of D is unaffected and carries a stable outlook.

Standard Chartered Bank Malaysia Bhd's bank financial strength rating of C- and foreign-currency long-term and short-term deposit ratings of A3/prime-1 are unaffected. The outlook is stable.

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