PETALING JAYA: Malaysian AE Models Holdings Bhd (Maemode) defaulted on its RM100mil term loan with two local banks, but the impact was felt more profoundly at RHB Bank Bhd than Malayan Banking Bhd (Maybank) because of its smaller loan base.
This led to a downgrade on RHB Capital Bhd (RHBCap), RHB Bank’s holding company, by Alliance Research, which said RHBCap might post disappointing second-quarter results owing to the default, coupled with lower-than-expected synergies from its acquisition of OSK Investment Bank (OSKIB).