Bank Islam’s Sukuk Ratings Unaffected by Proposed Reorganisation: RAM Ratings

The financial institution and Sukuk ratings of Bank Islam Malaysia (Bank Islam) will not be impacted by BIMB Holdings’ (BIMB) plan to reorganize its financial holding company structure, according to RAM Ratings (RAM). Current Sukuk ratings of Bank Islam include A1/Stable rating on the MYR 1 billion Subordinated Sukuk Murabahah Programme (2015/2045), as well as AA3/Stable rating on the Senior Sukuk Murabahah and A1/Stable rating on the Subordinated Sukuk Murabahah of Bank Islam’s MYR 10 billion Sukuk Murabahah Programme (2018/-). These ratings were reaffirmed by RAM earlier in January 2021.

Rationale

BIMB plans to elevate its wholly-owned subsidiary Bank Islam to the apex of the banking group, with the restructuring targete...