RAM Ratings has given an AA2 rating to RHB Bank’s proposed RM10 billion Multi-Currency Islamic Medium-Term Note Programme. The rating reflects the facility’s ranking as a senior unsecured obligation of the company. The company also rated RHB Islamic Bank AA2/Stable/P1/-, and its RM5 billion Subordinated Sukuk Murabahah Programme (2014/2034)AA3/Stable/-/-.
The financial institution ratings of the Group’s core subsidiaries, RHB Islamic Bank Berhad and RHB Investment Bank Berhad, are equated to those of RHB Bank, considering their strategic importance to the latter, RAM Ratings said.
"Growth at RHB Islamic has gained significant traction in recent years, propelling its ascension to third position in the Islamic banking space in terms of gross financing. The proportion of Islamic financing had risen to 39.6% of the Group’s domestic loans as at end-June 2020 (end-December 2016: 25%), a tad shy of its target of reaching 40% by the end of 2020. RHB Islamic believes that this target remains achievable," said the ratings firm.
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