RAM Ratings has assigned an AA2/Stable rating to the issuances on or after 1 January 2016 under CIMB Bank Berhad’s (rated AAA/Stable/P1) RM10 billion Tier-2 Subordinated Debt Programme (2013/2073).

Published on 17 June 2016

RAM Ratings has assigned an AA2/Stable rating to the issuances on or after 1 January 2016 under CIMB Bank Berhad’s (rated AAA/Stable/P1) RM10 billion Tier-2 Subordinated Debt Programme (2013/2073). This follows the amendments made to the terms of the issuances on or after 1 January 2016, such that the non-viability event (NVE) will be linked to CIMB Bank as well as CIMB Group Holdings Berhad (rated AA1/Stable/P1) and its subsidiaries. To date, there has been no issuance on or after 1 January 2016.

The amendments have been triggered by the applicability of regulatory capital requirements to financial holding companies (FHCs) such as CIMB Group Holdings. To qualify as consolidated regulatory capital of a FHC, the NVE of the subordinated debts issued by its subsidiaries must be linked to the FHC, besides the issuers. 

The AA1/Stable ratings of the subordinated debts issued prior to 1 January 2016, with the NVE linked only to CIMB Bank, are unaffected as the changes are not applicable to them.

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Lim Yu Cheng, CFA
(603) 7628 1188
yucheng@ram.com.my