RAM Ratings reaffirmed the AA3/Stable/P1 corporate credit ratings of AMMB Holdings Bhd., as well as the AA2/Stable/P1 financial institution ratings of units AmBank (M) Bhd., AmInvestment Bank Bhd. and AmBank Islamic Bhd.
RAM Ratings also reaffirmed the issue ratings of the bank and its funding conduit, AmPremiere Capital Bhd.
The rating agency said Dec. 29 the group's ratings reflect AMMB Holdings' sound capitalization levels offset by relatively weak funding position.
Meanwhile, the ratings of its units also reflect the parent's structural subordination as a nonoperating financial holding company and its comfortable company-level gearing and double leverage ratios. The ratings also reflect their respective strategic role to the parent as well as strong parental support when needed.
AmBank maintained its sound asset quality and capitalization, while AMInvestment Bank and AmBank Islamic's operations are highly integrated with those of their sister banks under a universal banking platform, allowing them to leverage on larger balance sheets to underwrite sizable deals.
AmInvestment Bank's earnings profile is integrally volatile given its involvement in capital-market activities. AmBank Islamic's asset quality indicators remain stable amid its financing portfolio still highly concentrated on vehicle financing.