TRIS affirms RHB Bank Berhad Thailand ratings
TRIS Rating has affirmed the issuer rating on RHB Bank Berhad Thailand (RHB) at “AA”, and also affirmed RHB’s short-term issuer rating at “T1+” with a “stable” outlook.
The ratings reflect the credit profile of the head office, RHB Bank Berhad, Malaysia (RHB Bank Berhad), and the strong liquidity position of RHB.
Based on its branch legal status, RHB is assigned the same rating as RHB Bank Berhad in Malaysia.
The issuer rating is based on TRIS Rating’s assessment of RHB Bank Berhad relative to its peers within the Malaysian banking industry.
The rating takes into consideration the Malaysian bank’s relatively stable business profile supported by diversified earnings, strong capital, good asset quality, and healthier impaired-loan coverage.
These strengths are, however, constrained by modest profitability and a relatively high reliance on wholesale funding, due to its moderate deposit franchise, relative to its peers, TRIS said.
As RHB Bank Berhad’s main business operation is in Malaysia, the rating also takes into consideration the strengths and risk profile of Malaysia’s economy and banking industry.