RAM Reaffirms Bank Muamalat’s A2/Stable/P1 Ratings; A3/Stable Rating of MYR 1 Billion Sukuk Programme

RAM Rating Services (RAM) has reaffirmed Bank Muamalat Malaysia Berhad’s (BMMB or the Bank) financial institution ratings (FIRs) at A2/Stable/P1. In addition, BMMB’s MYR 1 billion Subordinated Sukuk Murabahah Programme (2016/2036) rating has been reaffirmed as A3/Stable by RAM.

Ratings Rationale

The FIRs reflect BMMB’s robust capitalization and provisioning coverage, which provide a strong buffer against weakening in asset quality when financial relief measures are phased out. The difference between the FIR and the Sukuk rating reflects the subordination of the facility to BMMB’s senior unsecured obligations.

Details

BMMB’s gross impaired financing ratio had increased to 1.1% as of end-December 2020 (end-December 2019: 1.3%)...