Published on 05 February 2013
RAM Ratings has upgraded the
long-term rating of MBF Cards (M’sia) Sdn Bhd’s (“MBF Cards” or “the Company”)
RM600 million Commercial Papers/Medium-Term Notes (“CP/MTN”) Programme
(2007/2014), from A2 to AA3. The outlook on the long-term rating has been revised
to positive from stable. Concurrently, the short-term rating of the debt
facility has been reaffirmed at P1.
The rating upgrade reflects the
credit strength of AmBank (M) Berhad (“AmBank”, rated AA3/Positive/P1) – the
core banking entity of AMMB Holdings Berhad (“AMMB”). AMMB is the new parent of
MBF Cards after having acquired the Company on 3 December 2012. The revision of
the rating outlook on the CP/MTN Programme therefore follows a similar rating
action on AmBank.
MBF Cards is a strategic investment
aimed at propelling AmBank’s franchise in the credit-card and
merchant-acquiring businesses. Subject to regulatory approval, the Company’s
credit-card receivables and exposure will be transferred to AmBank by 3Q 2013.
During the transitional period, MBF Cards will be managed as a division of
AmBank; senior personnel from both AmBank and AMMB have been appointed to the
Company’s management line-up and board of directors. In addition, AmBank has
been extending funding support to MBF Cards.
RAM has been informed that,
subject to regulatory approval, MBF Cards’ CP/MTN Programme will be cancelled
upon the vesting of its credit-card receivables and exposure.
Media contact
Lim Yu Cheng
(603) 7628 1188
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