Fitch rates Maybank notes A-

Fitch Ratings said it assigned an expected rating of A- to Malayan Banking Bhd.'s (Maybank) proposed Hong Kong dollar-denominated floating-rate notes.

The notes will be issued under Maybank's $5 billion multi-currency medium-term note program.

The notes are rated at the same level as Maybank's A- long-term foreign-currency issuer default rating as they constitute direct, unconditional, unsubordinated and unsecured obligations of Maybank. Hence, the notes rank equally with all of its other unsecured and unsubordinated obligations, Fitch said.

The proceeds will be used for working capital, general banking and other corporate purposes.

The ratings are driven by the bank's intrinsic strength as underlined by its A- viability rating, the agency said. The bank also has a long-term local-currency issuer default rating of A-.

The ratings also consider the likely adverse impact on the bank's risk profile in light of the sovereign's weakening risk profile, Fitch said. This is because of the bank's significant exposure to the financial health of the government, as well as to the domestic economy and financial markets, the agency said.

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