RAM Reaffirms AAA(bg)/Stable Rating of MUFG Malaysia’s USD 500 Million Multi-Currency Sukuk Wakalah

RAM Rating Services (RAM) has reaffirmed the AAA(bg)/Stable rating of securities issued under MUFG Bank (Malaysia) Berhad’s (MUFG Malaysia) USD 500 million Multi-Currency Sukuk Wakalah Bi Al-Istithmar Programme. Concurrently, RAM has reaffirmed MUFG Malaysia’s AA1/Stable/P1 financial institution ratings.

The enhanced rating reflects a high likelihood of support from MUFG Malaysia’s parent company, MUFG Bank (rated AAA/Stable/P1 by RAM), which is Mitsubishi UFJ Financial Group’s commercial banking arm, and Japan’s leading banking group, according to RAM. In addition, the ratings consider MUFG Malaysia’s strong capitalisation and robust loan quality. RAM noted that the bank’s common equity tier-1 capital ratio was 23.4% in June 2020, comp...