RAM Ratings assigns AA3 rating to Maybank Islamic Berhad's proposed Basel III Islamic Additional Tier-1 Capital Securities Programme

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1. IB ​ ​Press​ ​Release​ ​Service Published​ ​on:​​ ​IslamicBanker.com​ ​Publications:​ ​https://www.islamicmarkets.com/publications RAM​ ​Ratings​ ​assigns​ ​AA3​ ​rating​ ​to​ ​Maybank Islamic​ ​Berhad's​ ​proposed​ ​Basel​ ​III​ ​Islamic Additional​ ​Tier-1​ ​Capital​ ​Securities Programme 11​ ​December​ ​2017 RAM​ ​Ratings​ ​has​ ​assigned​ ​an​ ​AA3/Stable​ ​rating​ ​to​ ​the​ ​securities​ ​to​ ​be​ ​issued​ ​under​ ​Maybank Islamic​ ​Berhad's​ ​(the​ ​Bank)​ ​proposed​ ​Islamic​ ​Additional​ ​Tier-1​ ​Capital​ ​Securities​ ​Programme​ ​of up​ ​to​ ​RM10.0​ ​billion​ ​(Proposed​ ​AT-1​ ​Programme).​ ​Concurrently,​ ​we​ ​have​ ​reaffirmed​ ​the​ ​Bank's AAA/Stable/P1​ ​financial​ ​institution​ ​ratings​ ​as​ ​well​ ​as​ ​the​ ​respective​ ​AAA/Stable/P1​ ​and AA1/Stable​ ​ratings​ ​of​ ​its​ ​RM10.0​ ​billion​ ​Islamic​ ​CP/MTN​ ​Programme​ ​(2017/2024)​ ​and​ ​RM10.0 billion​ ​Subordinated​ ​Sukuk​ ​Murabahah​ ​Programme​ ​(2014/2034). As​ ​Malayan​ ​Banking​ ​Berhad's​ ​(Maybank,​ ​rated​ ​AAA/Stable/P1)​ ​Islamic​ ​banking​ ​arm,​ ​Maybank Islamic​ ​Berhad​ ​is​ ​deemed​ ​highly​ ​strategic​ ​to​ ​its​ ​parent.​ ​As​ ​such,​ ​the​ ​Bank's​ ​ratings​ ​encompass our​ ​expectation​ ​of​ ​ready​ ​support​ ​from​ ​Maybank,​ ​if​ ​needed.​ ​Maybank​ ​Islamic​ ​Berhad​ ​is​ ​the largest​ ​Islamic​ ​bank​ ​in​ ​Malaysia,​ ​accounting​ ​for​ ​34%​ ​of​ ​the​ ​domestic​ ​Islamic​ ​banking​ ​segment's financing​ ​and​ ​a​ ​third​ ​of​ ​its​ ​deposits​ ​and​ ​investment​ ​accounts​ ​as​ ​at​ ​end-September​ ​2017. The​ ​AT-1​ ​capital​ ​securities​ ​issued​ ​under​ ​the​ ​Bank's​ ​Proposed​ ​AT-1​ ​Programme​ ​have​ ​a subordinated​ ​ranking​ ​and​ ​fully​ ​discretionary​ ​profit​ ​payments.​ ​In​ ​addition,​ ​the​ ​Proposed​ ​AT-1 Programme​ ​carries​ ​a​ ​loss-absorption​ ​feature​ ​(through​ ​write-offs​ ​or​ ​conversion​ ​into​ ​ordinary shares)​ ​linked​ ​to​ ​the​ ​Bank​ ​or​ ​Maybank​ ​and​ ​its​ ​group​ ​of​ ​companies​ ​(collectively​ ​referred​ ​to​ ​as ''the​ ​referenced​ ​entities'').​ ​The​ ​loss-absorption​ ​feature​ ​will​ ​be​ ​triggered​ ​when​ ​any​ ​of​ ​the referenced​ ​entities​ ​faces​ ​a​ ​non-viability​ ​event,​ ​or​ ​if​ ​any​ ​of​ ​their​ ​common-equity​ ​tier-1​ ​capital ratios​ ​falls​ ​below​ ​5.125%. Organisation​ ​Name: News​ ​Type: Source: RAM​ ​Rating​ ​Services​ ​Berhad RATING​ ​ANNOUNCEMENT BNM​ ​Announcements
2. IB ​ ​Press​ ​Release​ ​Service Published​ ​on:​​ ​IslamicBanker.com​ ​Publications:​ ​https://www.islamicmarkets.com/publications Media​ ​Contact Padthma​ ​Subbiah (603)​ ​7628​ ​1162 padthma@ram.com.my Disclaimer: The​ ​credit​ ​rating​ ​is​ ​not​ ​a​ ​recommendation​ ​to​ ​purchase,​ ​sell​ ​or​ ​hold​ ​a security,​ ​inasmuch​ ​as​ ​it​ ​does​ ​not​ ​comment​ ​on​ ​the​ ​security's​ ​market price​ ​or​ ​its​ ​suitability​ ​for​ ​a​ ​particular​ ​investor,​ ​nor​ ​does​ ​it​ ​involve​ ​any audit​ ​by​ ​RAM​ ​Ratings.​ ​The​ ​credit​ ​rating​ ​also​ ​does​ ​not​ ​reflect​ ​the legality​ ​and​ ​enforceability​ ​of​ ​financial​ ​obligations. RAM​ ​Ratings​ ​receives​ ​compensation​ ​for​ ​its​ ​rating​ ​services,​ ​normally paid​ ​by​ ​the​ ​issuers​ ​of​ ​such​ ​securities​ ​or​ ​the​ ​rated​ ​entity,​ ​and sometimes​ ​third​ ​parties​ ​participating​ ​in​ ​marketing​ ​the​ ​securities, insurers,​ ​guarantors,​ ​other​ ​obligors,​ ​underwriters,​ ​etc.​ ​The​ ​receipt​ ​of this​ ​compensation​ ​has​ ​no​ ​influence​ ​on​ ​RAM​ ​Ratings'​ ​credit​ ​opinions or​ ​other​ ​analytical​ ​processes.​ ​In​ ​all​ ​instances,​ ​RAM​ ​Ratings​ ​is committed​ ​to​ ​preserving​ ​the​ ​objectivity,​ ​integrity​ ​and​ ​independence​ ​of its​ ​ratings.​ ​Rating​ ​fees​ ​are​ ​communicated​ ​to​ ​clients​ ​prior​ ​to​ ​the issuance​ ​of​ ​rating​ ​opinions.​ ​While​ ​RAM​ ​Ratings​ ​reserves​ ​the​ ​right​ ​to disseminate​ ​the​ ​ratings,​ ​it​ ​receives​ ​no​ ​payment​ ​for​ ​doing​ ​so,​ ​except for​ ​subscriptions​ ​to​ ​its​ ​publications. Similarly,​ ​the​ ​disclaimers​ ​above​ ​also​ ​apply​ ​to​ ​RAM​ ​Ratings' credit-related​ ​analysis​ ​and​ ​commentaries,​ ​where​ ​relevant.