In a statement, CIMB Bank said the financing would be offered at a lower interest rate, flexible payment period and interest servicing up to six months, to help SMEs manage cash flow.
KUALA LUMPUR: Moody's Investors Service has assigned an A3 senior unsecured debt rating to CIMB Bank Berhad's (A3/A3 stable, baa2) proposed HK dollar-denominated fixed rate notes, issued by its Hong Kong branch, under CIMB Bank's US$5bil Euro medium term note (EMTN) programme. The rating outlook is stable.
Moody's said on Thursday it had also assigned a provisional (P)A3 long-term foreign currency senior unsecured MTN rating to CIMB Bank Bhd, Hong Kong branch, with
respect to CIMB Bank's US$5bil EMTN programme.
The rating agency also assigned local and foreign currency counterparty risk ratings of A3/Prime-2, and counterparty risk assessments of A3(cr)/Prime-2(cr) to CIMB Bank Bhd, Hong Kong branch.
The A3 senior unsecured rating assigned to the HK$ notes is in line with CIMB Bank's A3 foreign currency senior unsecured debt rating.
The HK$ notes constitute the direct, unconditional, unsubordinated and unsecured obligations of the issuer.
As such, they will rank pari passu with the issuer's existing and future unsecured and unsubordinated obligations.The notes will be redeemable at principal on maturity.
The A3 rating on the notes is based on the draft pricing supplement and the bank's EMTN prospectus.
The (P)A3 senior unsecured MTN rating assigned to the Hong Kong branch is in line with CIMB Bank's foreign currency senior unsecured debt rating.
The senior unsecured MTN rating of (P)A3 incorporates two notches of uplift from CIMB Bank's baa2 Baseline Credit Assessment (BCA), based on Moody's expectation of a very high probability of support from the Government of Malaysia (A3 stable) to the bank in times of need.
The A3(cr)/P-2(cr) counterparty risk (CR) assessments assigned to the Hong Kong branch are in line with CIMB Bank's CR Assessments.
The CR Assessment, prior to government support, is positioned one notch above the baa2 Adjusted BCA of CIMB Bank. Moody's incorporates very high government support assumptions for the bank in times of need, which leads to an additional notch of government support uplift to the CR Assessment of A3(cr).
The A3/P-2 local and foreign currency counterparty risk ratings (CRRs) assigned to the Hong Kong branch are in line with CIMB Bank's CRRs.
“Moody's does not see Malaysia as having an operational resolution regime. Moody's therefore applies its basic loss given failure (LGF) approach in assigning CRRs to CIMB Bank.
Moody's basic LGF analysis positions CRRs in line with the bank's CR assessments, which are one notch above the bank's adjusted BCA of baa2, prior to government support,” it said.
It said the outlook on the bank's ratings is stable, in line with the stable outlook on CIMB bank's ratings.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
