Friday, Jul 18, 2014
MARC will assess the impact on its ratings of the financial institutions and programmes under CIMB Group Holdings Berhad from the group’s proposed merger exercise only upon obtaining greater clarity on the details of the exercise. CIMB Group had recently announced its intention to merge with RHB Capital Berhad and Malaysia Building Society Berhad. Among the key details the rating agency will seek for its impact assessment are the group’s funding plans for the merger exercise, implementation timeline, management plans post-merger, and capital structure of the merged entity.
At this preliminary stage of the merger proposal, however, MARC will maintain its ratings on the financial institutions and programmes linked to CIMB Group as well as on the rated programme of Sistem Penyuraian Trafik KL Barat Sdn Bhd (SPRINT) for which RHB Bank Berhad, a wholly-owned subsidiary of RHB Capital, is one of the guarantors.The list of MARC ratings that could be potentially affected by the CIMB Group merger proposal is appended in the table below:
Entities | Programme | Ratings | Outlook |
| CIMB Bank Berhad | Financial Institution Rating | AAA/ MARC-1 | Stable |
| RM5.0 billion Subordinated Debt & Junior Sukuk Programmes | AA+/ AA+IS | Stable | |
| RM4.0 billion Perpetual Non-Innovative Tier 1 Stapled Capital Securities | AA | Stable | |
| RM1.0 billion Innovative Tier 1 Capital Securities | AA | Stable | |
| RM10.0 billion Basel III-compliant Tier 2 Subordinated Debt Programme | AA+ | Stable | |
| CIMB Islamic Bank Berhad | Financial Institution Rating | AAA/ MARC-1 | Stable |
| RM2.0 billion Tier 2 Junior Sukuk Programme | AA+IS | Stable | |
| SPRINT | RM365 million Bank Guaranteed Serial Fixed Rate Bonds | AA-(bg) | Stable |
Contacts:
Sharidan Salleh, +603-2082 2254/ sharidan@marc.com.my;
Se Tho Mun Yi, +603-2082 2263/ munyi@marc.com.my;
Sonia Lim, +603-2082 2267/ sonia@marc.com.my.