Moody's: 9 Malaysian banks at A1

Moody's Investors Service said it concluded the review of the deposit and debt ratings of nine Malaysian banks that began in May to examine their systemic support.

Consistent with Moody's analytical criteria and in light of Malaysia's current situation and future prospects, the agency said it has concluded that the systemic support input for Malaysian bank ratings should be at the A1 level, which is two notches above the country's local-currency government debt rating of A3, Moody's said.

Despite the banking system's significant size, Moody's said the levels of credit stress faced by banks in the economic downturn will be manageable.

AmBank's foreign-currency long-term and short-term deposit ratings of Baa2/prime-3 and preference stock rating of Ba2 were confirmed with a stable outlook. Its bank financial strength rating of D- is unaffected and carries a stable outlook.

CIMB Bank'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 confirmed with a stable outlook. Its bank financial strength rating of D+ is unaffected and carries a stable outlook.

CIMB Investment Bank's local-currency long-term and short-term issuer ratings were lowered to Baa1/prime-2 from A3/prime-1. Its foreign-currency long-term and short-term issuer ratings were revised to Baa1/prime-2 from A3/prime-1. All of its ratings carry a stable outlook. A distinction was made between the ratings of CIMB Investment Bank and CIMB Bank to reflect the possibility that support for investment banks may be lower than commercial banks in a systemic crisis, Moody's said.

EON Bank's foreign-currency long-term and short-term deposit ratings of Baa2/prime-3 were confirmed with a stable outlook. Its bank financial strength rating of D is unaffected and carries a stable outlook.

Hong Leong Bank'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 confirmed with a stable outlook. Its bank financial strength rating of C- is unaffected and carries a stable outlook.

HSBC Bank Malaysia's local-currency long-term deposit rating of Aa3 was confirmed with a stable outlook. Its bank financial strength rating of C- is unaffected and carries a stable outlook.

Malayan Banking's local-currency long-term deposit rating of A1 and foreign-currency tier 1 capital securities rating of A3 were confirmed with a negative outlook. Its bank financial strength rating of C is unaffected and continues to carry a negative outlook. Its local-currency and foreign-currency short-term deposit ratings of prime-1, foreign-currency long-term deposit rating of A3 and foreign-currency subordinated debt rating of A3 are unaffected. These ratings carry a stable outlook.

Public Bank'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 confirmed with a stable outlook. 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. These ratings carry a stable outlook.

RHB Bank's foreign-currency long-term and short-term deposit ratings of A3/prime-1 were confirmed with a stable outlook. Its bank financial strength rating of D is unaffected and carries a stable outlook.

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