RAM assigns preliminary AA3 rating to AmBank’s RM4 billion Basel III-compliant notes programme

RAM assigns preliminary AA3 rating to AmBank’s RM4 billion Basel III-compliant notes programme

Published on 05 December 2013

RAM Ratings has assigned a preliminary AA3 rating to AmBank (M) Berhad’s (AmBank) proposed RM4 billion Tier-2 Subordinated Notes Programme. Concurrently, RAM has reaffirmed AmBank’s respective long- and short-term financial institution ratings at AA2 and P1, along with the Bank’s issue ratings. All the long-term ratings have a stable outlook.

The securities issued under the proposed Programme are Basel III-compliant and qualify as tier-2 regulatory capital. In addition to their subordinated ranking in the priority of claims in the event of bankruptcy or liquidation, the securities also have a loss-absorption feature linked to the occurrence of a non-viability event. In line with RAM’s rating approach for securities that meet the minimum requirements for Basel III-compliant tier-2 subordinated debt, the proposed Programme is rated 1 notch below the Bank’s long-term financial institution rating, to reflect the securities’ subordination in the event of bankruptcy or liquidation.

Issue ratings of AmBank

	Rating action	Rating/Outlook
AmBank (M) Berhad
Proposed RM4 billion Tier-2 Subordinated Notes Programme)	Assigned	AA3/Stable
RM7 billion Senior Notes Issuance Programme (2010/2040)	Reaffirmed	AA2/Stable
RM1 billion Negotiable Instruments of Deposit	Reaffirmed	AA2/Stable
RM2 billion MTN Programme (2008/2028)	Reaffirmed	AA3/Stable
RM500 million Non-Cumulative Perpetual Capital Securities (2009/2069)	Reaffirmed	A1/Stable
RM500 million Innovative Tier-1 Capital Securities Programme  (2009/2069)	Reaffirmed	A1/Stable

Media contact
Joanne Kek
(603) 7628 1163
joanne@ram.com.my