S&P Global Ratings: Downside risks rising for Malaysian banks

In our base case, we expect the banking industry's nonperforming loan (NPL) ratio to reach 3%-4% and credit costs to stay at 55-60 basis points (bps) annually over 2021 and 2022, before recovering gradually.

KUALA LUMPUR: S&P Global Ratings has affirmed its 'A-' long-term and 'A-2' short-term issuer credit ratings on CIMB Bank Bhd., Malayan Banking Bhd., and Public Bank Bhd.

It also affirmed its 'BBB+' long-term and 'A-2' short-term issuer credit rating on AmBank (M) Bhd. and RHB Bank Bhd.