MARC Affirms Bank Muamalat Malaysia’s FI Ratings, AIS Rating of MYR 2 Billion Senior Sukuk

Malaysian Rating Corporation (MARC) has affirmed Bank Muamalat Malaysia’s (BMMB) financial institution (FI) ratings of A/MARC-1, as well as the AIS rating of the bank’s Islamic Senior Notes Programme (Senior Sukuk) of up to MYR 2 billion, with a Stable Outlook.

The FI ratings reflect BMMB’s modest size, robust capitalisation, moderate financial performance and weakening asset quality metrics. According to the rating agency, BMMB’s market share in Malaysia’s Islamic banking industry’s gross financing and total deposits segment was a modest 2.6% and 3.2% respectively, with the bank registering a 6.2% year-on-year growth in financing portfolio in the first half of 2020 (1H 2020). MARC noted that consumer banking accounted for 64.5% of BMMB&rsqu...