S&P: Four Malaysian banks view to negative

Standard & Poor's said it revised the outlook on four Malaysian financial institutions to negative from stable.

The financial institutions are CIMB Group Holding Bhd., AmBank (M) Bhd., RHB Bank Bhd. and RHB Investment Bank Bhd.

The agency said it also lowered the long-term Asean regional scale rating on CIMB Group Holding Bhd. to axBBB+ from axA- and affirmed the axA-2 short-term rating.

S&P also said it affirmed the global scale ratings on all four financial institutions.

The outlook was revised due to the rising economic risk for banks operating in Malaysia given the prolonged run-up in housing prices and household debt in Malaysia, the agency said.

The negative outlook recognizes the potential for deterioration in the banks' asset quality and financial profile, if the consumer debt burden proves excessive in an unfavorable economic scenario, S&P said.

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