Tuesday, 7 November 2017

Bank of Tokyo-Mitsubishi UFJ Malaysia gets AAA(bg)/Stable rating on sukuk wakalah

RAM Ratings has reaffirmed the AAA(bg)/Stable rating of the securities issued under Bank of Tokyo-Mitsubishi UFJ Malaysia (BTMU Malaysia) for a US$500 million Multi-Currency Sukuk Wakalah Bi Al-Istithmar Programme.

BTMU Malaysia is wholly owned by The Bank of Tokyo-Mitsubishi UFJ, itself rated AAA/Stable/P1 by RAM. Both belong to the Mitsubishi UFJ Financial Group (MUFG) - one of the world’s largest banking groups and also Japan’s leading banking group. The enhanced issue rating reflects the irrevocable and unconditional guarantee extended by BTMU on the sukuk wakalah issued under the programme, RAM Ratings said.

"The bank and its parent constitute part of the BTMU Malaysia’s ratings benefit from a strong likelihood of support from its parent. The ratings also reflect its robust capitalisation, superior loan quality and stable income-generating capacity," said RAM in a statement.

BTMU Malaysia’s loan base expanded 9% in the 15-month fiscal period ended 31 March 2017; the Bank recently changed its financial year-end from 31 December to 31 March. BTMU Malaysia’s loan portfolio is of superior quality as a result of its focus on the Malaysian-domiciled entities owned by established Japanese conglomerates, multinationals and highly-rated domestic names, RAM Ratings notes.