On 31 May 2011, Malayan Banking Berhad (which holds AAA/Stable/P1 financial institution ratings) and CIMB Group Holdings Berhad (which carries AA1/Stable/P1 corporate credit ratings) announced that they had each received approval from Bank Negara Malaysia to separately commence talks with RHB Capital Berhad (RHB Capital) and its substantial shareholders for a possible merger of their respective businesses. RHB Capital is the ultimate parent company of RHB Bank Berhad, RHB Islamic Bank Berhad and RHB Investment Bank Berhad (all rated AA2/Stable/P1 by RAM Ratings), and is currently the fifth-largest banking group in Malaysia.
We will closely monitor the outcome of these negotiations and will make further rating announcements as and when sufficient details are made known. In assessing the merits of a potential merger, RAM Ratings will take into consideration business synergies, as well as acquisition costs and their associated funding and capital structures.
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