Published on 15 April 2013
RAM Ratings has lifted the
positive Rating Watch and concurrently upgraded the long-term rating of OSK
Investment Bank Berhad’s (“OSK Investment”) subordinated medium-term notes
(“MTN”), issued under its RM400 million MTN Programme (2008/2022), from A2 to
AA3, with a stable outlook.
Pursuant to the vesting order
granted by the High Court on 27 February 2013, the entire business of OSK
Investment - including all its assets and liabilities - was transferred to RHB
Investment Bank Berhad (“RHB Investment”) on 13 April 2013. The rating upgrade
is therefore premised on the credit standing of RHB Investment - the new
obligor of OSK Investment’s debt securities. RHB Investment’s AA2/Stable/P1
financial institution ratings were reaffirmed by RAM on 5 December 2012. The
1-notch differential between RHB Investment’s long-term financial institution
rating and the AA3 rating of the subordinated MTN reflects the subordination of
the debt facility to RHB Investment’s senior unsecured obligations.
In view of the circumstances,
RAM has also lifted the positive Rating Watch and withdrawn the A1/Stable/P1
financial institution ratings of OSK Investment with immediate effect. As such,
we no longer have any rating obligation on OSK Investment.
Media contact
Kwan Ji-Ling
(603) 7628 1115
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