S&P: CIMB view developing

Standard & Poor's said it revised the outlook on the BBB/A-2 counterparty credit ratings on Malaysia's Commerce International Merchant Bankers Bhd. (CIMB) to developing from stable.

At the same time, the BBB-/A-3 counterparty credit ratings on Bumiputra-Commerce Holdings Bhd. (BCHB) remain on CreditWatch, where they were placed with negative implications on March 16, the agency added.

The outlook revision on CIMB reflects S&P's expectations that CIMB will remain a core subsidiary of the BCHB group, given that it continues to conduct business activities that are integral to the group, even after the restructuring.

S&P added that the rating on BCHB, which is assessed as a holding company under Standard & Poor's group rating methodology, can be one to three rating notches below the group rating to reflect its structural subordination and lower debt-servicing capability when compared with the group's operating subsidiaries.

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