RAM Reaffirms Ratings For Maybank Islamic, Sukuk Murabahah Programme

KUALA LUMPUR, Dec 15 (Bernama) -- RAM Ratings Services Bhd has reaffirmed Maybank Islamic Bhd's AAA/Stable/P1 financial institution ratings and the AA1/Stable rating for the bank's US$2.24 billion (RM10 billion) Subordinated Sukuk Murabahah Programme (2014/2034). (US$1 = RM4.46) The rating agency said Maybank Islamic, Malaysia's biggest and world's top five Islamic bank, was underscored by 34 per cent share of finances from local Islamic banking sector and 30 per cent deposits and investment of its accounts (IAs) as at September end 2016. Maybank Islamic, the Islamic banking arm of Malayan Banking Bhd (Maybank), is strategic to the group and as such reflected its expectation of ready support from the bank. "The bank also commanded a lion's share of 87 per cent of the industry's IAs with its Islamic financing being accounted for about 53 per cent of the group's domestic financing for the same period," it said. Amid tougher operating landscape, RAM Ratings expected Maybank Islamic's asset-quality pressures to persist, compounded by seasoning of its portfolio, given its rapid growth in recent years. -- BERNAMA