Concurrently, Maybank’s Proposed RM1 billion Islamic Subordinated Bonds (Islamic Sub-Bonds) – the largest Islamic sub-bond issuance by a financial institution in Malaysia – have been assigned a long-term rating of AA1.
Meanwhile, the rating for the Bank’s RM610 million Subordinated Bonds has been reaffirmed at AA1. All the long-term ratings carry a stable outlook.
The core of Maybank’s success is its growing and sustainable stream of fee-based activities and the ability to maintain its steady lending momentum, backed by a stable and relatively low cost of funding.
Meanwhile, Maybank’s proposed acquisition of insurance player MNI Holdings Berhad, coupled with the Group’s existing foreign operations, provide added diversification and new sources of revenue.
Maybank’s current readiness vis-à-vis compliance with the BASLE II framework will also enable better risk-adjusted capital management and pricing, giving it the capacity to focus on growth while most other local banks are still racing to meet Bank Negara Malaysia’s capital-adequacy requirements by 2008.
Maybank’s commitment towards strengthening the quality of its credit origination and the recovery of bad loans, coupled with its long-standing and conservative provisioning policies, further reinforce its asset quality.
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