Fitch keeps EON Bank on positive watch

Fitch Ratings said it is maintaining EON Bank's ratings, including its BBB- long-term foreign-currency issuer default rating, F3 short-term foreign-currency issuer default rating and BBB long-term deposit rating, on Rating Watch Positive.

EON Bank's ratings have been maintained on Positive Watch and the resolution of the bank's ratings will depend on the completion of the legal merger between Hong Leong Bank Bhd. (BBB+/stable) and EON Bank, the agency said.

Hong Leong announced that its takeover offer for all the assets and liabilities of EON Capital has been completed, the agency added.

While the legal merger is pending, Fitch noted there could be uncertainty over the reported appeal by Primus Pacific, a private equity fund and EON Capital's largest shareholder, following the court's decision to dismiss its legal suit against certain other shareholders and directors of EON Capital.

The ratings were placed on Positive Watch in July 2010 to reflect the positive impact on EON Bank's risk profile from the proposed takeover by Hong Leong, which has a more sound credit standing than EON Bank, the agency added.

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