Ratings

RATING Agency Malaysia Bhd (RAM) said the Government's recent imposition of an additional 13% tax on tobacco has not affected the AAA/P1 ratings of BRITISH AMERICAN TOBACCO (M) BHD's debt issues.  

In a statement, the rating agency said the industry players' almost-immediate price increases on cigarettes are expected to cover the higher levy, leaving room for a slight margin. 

The rating agency reiterated that BAT Malaysia's sturdy credit profile remained intact. – Bernama 

RAM has reaffirmed ABN AMRO BANK BHD'S respective long- and short-term ratings at AA2 and P1, with a stable outlook. 

The ratings reflect the bank's healthy asset quality, solid capitalisation, adequate funding and liquidity positions as well as strong financial flexibility, supported by its parent, ABN AMRO Holding NV, RAM said in a statement. 

RAM said with the bank's strategic move to focus on its wholesale banking activities, ABN AMRO's non-interest income had been increasing in the last few years while its net interest income remained relatively stable. 

However, due to the bank's heavy reliance on non-interest income, its performance may become more erratic going forward, RAM said. – Bernama 

MALAYSIAN Rating Corp Bhd has assigned ratings of MARC1ID/ AA ID to SYARIKAT BEKALAN AIR SELANGOR SDN BHD'S (Syabas) RM3bil Bai Bithaman Ajil commercial papers/medium-term notes programme. 

The rating was based on the company's dominant position as the sole distributor of treated water for Selangor, Kuala Lumpur and Putrajaya; the government's support for the water privatisation programme; the low risk nature of the business given the importance of treated water for daily consumption; and the growing water demand in the said territories. – Bernama  

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In a statement, the rating agency said the industry players' almost-immediate price increases on cigarettes are expected to cover the higher levy, leaving room for a slight margin.