KUALA LUMPUR: RAM Rating Services Bhd has reaffirmed RHB Bank Bhd's respective long- and short-term financial institution ratings at AA2 and P1; the bank's issue ratings have also been reaffirmed.
The ratings agency said on Monday, Oct 3 that it assigned respective AA2 and AA3 ratings to the bank's proposed senior notes and proposed subordinated notes under its proposed RM3 billion multi-currency medium-term note (MCMTN) programme.
The proceeds from the proposed MCMTN programme would be for general working capital, other corporate purposes and any repayment of borrowings.
The proposed subordinated notes qualify as the bank's Tier-2 capital under Bank Negara Malaysia's capital-adequacy regulations. All the long-term ratings have a stable outlook.
RAM Ratings said the one notch rating differential between RHB Bank's AA2 long-term financial institution rating and the AA3 ratings of its subordinated notes reflects the subordination of the debt facilities to its senior unsecured obligations.
The two notches rating differential between RHB Bank's AA2 long-term financial institution rating and the A1 rating of its hybrid Tier-1 securities indicates the deeply subordinated nature and embedded interest-deferral feature of the hybrid instruments.
The ratings agency said on Monday, Oct 3 that it assigned respective AA2 and AA3 ratings to the bank's proposed senior notes and proposed subordinated notes under its proposed RM3 billion multi-currency medium-term note (MCMTN) programme.
The proceeds from the proposed MCMTN programme would be for general working capital, other corporate purposes and any repayment of borrowings.
The proposed subordinated notes qualify as the bank's Tier-2 capital under Bank Negara Malaysia's capital-adequacy regulations. All the long-term ratings have a stable outlook.
RAM Ratings said the one notch rating differential between RHB Bank's AA2 long-term financial institution rating and the AA3 ratings of its subordinated notes reflects the subordination of the debt facilities to its senior unsecured obligations.
The two notches rating differential between RHB Bank's AA2 long-term financial institution rating and the A1 rating of its hybrid Tier-1 securities indicates the deeply subordinated nature and embedded interest-deferral feature of the hybrid instruments.
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