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RAM reaffirms CIMB Group rating

August 7, 2012

KUALA LUMPUR: RAM Rating Services Bhd had reaffirmed the respective long- and short-term financial institution ratings of CIMB Bank Bhd, CIMB Islamic Bank Bhd and CIMB Investment Bank Bhd at AAA and P1.

Concurrently, CIMB Group Holdings Bhd’s (CIMB Group or the Group) respective long- and short-term corporate credit ratings of AA1 and P1, along with its issue ratings, have also been reaffirmed.
All the long-term ratings have a stable outlook.

In a statement, RAM said CIMB Group was the fifth-largest banking group in Asean operating on a universal banking model with its subsidiaries CIMB Bank, CIMB Islamic and CIMB Investment having robust franchises.

The CIMB Group relies on dividend income from its subsidiaries for debt servicing and its corporate credit ratings reflect the credit metrics of its core banking subsidiaries and its structural subordination as their shareholder.

Meanwhile, the group has proposed to acquire a 60% stake in Philippines-based Bank of Commerce – an expansion move that would largely complete its Asean footprint.

In addition, its regional aspirations are enhanced by the proposed acquisition of The Royal Bank of Scotland’s Asia-Pacific investment-banking and cash equity businesses.

This will further strengthen CIMB Group’s capital-market franchise and cross-border distribution capabilities.

RAM also said the management of CIMB Group has indicated that further major acquisitions were unlikely in the near-term as such integration and extraction of synergies form the new entities would be its main focus for now.



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