MARC confirms AA+IS/stable rating on CIMB
Posted on August 15, 2012, Wednesday
KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has confirmed its AA+IS/Stable rating on CIMB Islamic Bank Bhd’s (CIMB Islamic) RM2 billion Tier-2 Junior sukuk programme in connection with the bank’s issuance of its third tranche under it.
In a note yesterday, MARC said there were two prior issued tranches of sukuk under the same programme, the RM300 million sukuk issued in September 2009 and RM250 million sukuk issued in April last year.
The programme rating was one notch below that of the bank’s financial institution (FI) rating of AAA.
The sukuk qualified as supplementary capital under Malaysia’s existing regulatory capital rules.
MARC confirmed CIMB Islamic Bank’s FI and sukuk ratings and outlook as remaining unchanged, as its financial metrics and parent CIMB Bank Bhd, remained in line with expectations for the current rating category.
The ratings continued to be substantially underpinned by the strength of CIMB Bank’s domestic banking franchise and stable asset quality, coupled with a track record of continuous growth in earnings and strong capitalisation.
MARC recognises CIMB Islamic as an important part of CIMB Group’s overall franchise.
“CIMB Islamic’s standalone credit profile has remained in line with MARC’s expectations.
“Its recent operating performance has been characterised by relatively stable pre-provision earnings,” it said.