S&P: Public Bank unchanged

Standard & Poor's said its ratings and outlook on Public Bank Bhd. (PBB, A-/stable/A-2) are unaffected by the Malaysian bank's planned acquisition of Asia commercial Bank in Hong Kong for HK$4.5 billion.

The agency said the proposed acquisition, which is to be funded by a combination of a rights issue and borrowings, is not expected to materially affect PBB's key financial measures, in particular its capitalization levels, which remain supportive of the current rating and its asset quality.

As a result of this acquisition, PBB's capitalization, as denoted by its adjusted common equity to assets ratio, is expected to be around 5.5%, based on December financials, S&P added.

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