KUALA LUMPUR (March 12): Moody's Investors Service has affirmed AmBank (M) Bhd's (AmBank) A3 long-term foreign currency deposit rating and AmBank's baa2 Baseline Credit Assessment (BCA), but revised its rating outlook to negative from stable, following its 1Malaysia Development Bhd (1MDB) settlement.
In a statement, Moody's said the rating action follows AMMB Holdings Bhd's (AmBank Group) RM2.83 billion settlement with the government of Malaysia in relation to its involvement with 1MDB.
"The affirmation of AmBank's A3 rating incorporates Moody's assessment of a very high likelihood of support from the government of Malaysia in times of need.
"This results in a two-notch uplift from the bank's baa2 BCA, based on AmBank Group's systemic importance as the sixth-largest banking group in Malaysia by assets, with AmBank as the group's main operating entity," it said.