KUALA LUMPUR: RAM Ratings has reaffirmed the respective long and short-term ratings of Sabah Development Bank Bhd (SDB) RM1bil medium-term notes (MTN) and commercial paper (CP) programme (2011/2031), as well as its RM1bil MTN (2008/2028) and RM500mil CP (2008/2015) programme at AA1 and P1.
All the long-term ratings have a stable outlook.
RAM Ratings said the ratings reflected the support SDB received from the state government of Sabah.
“As a development financial institution that is fully owned by the state, SDB plays a strategic role as a growth catalyst for Sabah. The bank depends on the strategic direction of the state in view of its primary role as a disbursement arm for the latter,” it said in a recent statement.
In fiscal 2010, SDB’s pre-tax profit surged 35.7% to RM88mil. Its overall risk-weighted capital-adequacy ratio (RWCAR) remained stable at 20.7% while its tier-1 RWCAR rose to 19.5% at the end of that period.