SINGAPORE, Nov 9 — Moody’s Investors Service has placed on review for downgrade on the A3 long-term deposit rating of Standard Chartered Bank Malaysia Bhd (SCBM).
In a statement, it said the rating action is driven by the review for downgrade on the long-term ratings of Standard Chartered PLC (SCPLC) and Standard Chartered Bank (SCB) today, and in particular by the review of SCB’s adjusted baseline credit assessment of a2 — which is used by Moody’s to derive parental support for SCBM.
In turn, the review on SCPLC and SCB followed the group’s announcement of its weak 3Q 2015 results and a new strategic plan.
At the same time, Moody’s has also placed on review for downgrade SCBM’s adjusted baseline credit assessment (adjusted BCA) of a3, as well as the bank’s long-term and short-term counterparty risk assessments (CR assessments) of A2(cr)/P-1(cr).
The bank’s short-term deposit rating of P-2 was affirmed. SCBM’s BCA of baa2 remains unchanged.
SCBM’s A3 deposit rating and a3 adjusted BCA currently incorporate two notches of uplift based on very strong probability of support from its parent SCB.
SCBM is fully owned by SCB and is closely integrated into the group’s operations.
Therefore, SCBM’s deposit rating and adjusted BCA are sensitive to changes in the adjusted BCA of SCB. — Bernama
