Fitch maintains EON Bank on positive watch

Fitch Ratings is maintaining EON Bank's BBB- long-term foreign-currency issuer default rating on Rating Watch positive, along with its short-term foreign-currency issuer default rating of F3 and long-term deposit rating of BBB.

The ratings have been maintained on Positive Watch as Hong Leong's proposed takeover offer for all the assets and liabilities of EON Capital, the investment holding company of EON Bank, is still pending completion, Fitch said.

This is because of the ongoing arbitration over the disputes between Primus Pacific and certain other shareholders and directors of EON Capital, the agency said.

Fitch said it expects to resolve the Rating Watch once there is greater clarity on the outcome of the proposed deal.

Should the proposed deal fail to materialize, the agency said it expects the outlook on EON Bank's ratings to be stable given its satisfactory capital position, which helps to mitigate its moderate earnings and less diversified business profile amid the still uncertain global economic environment.

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