Fitch affirms ratings of MCB Bank after Maybank announcement
Fitch Ratings has affirmed the Individual and Support ratings of MCB Bank Limited (MCB) at ‘D’ and ‘5′ respectively, following the announcement that Malayan Banking Berhad (Maybank, foreign and local currency Issuer Default Ratings of ‘A-’ (A minus)/ Rating Watch Evolving) would be acquiring up to 20% in MCB from the latter’s largest shareholder, the Nishat group.
MCB’s Individual rating at ‘D’ reflects its satisfactory financial profile as characterised at end-Q108 by a ROA of 3.9%, equity/assets ratio of 12.1% and gross non-performing loans (NPL) ratio of 4.8%, in the context of a weak and volatile operating environment in Pakistan which still poses significant challenges and political risks.
Meanwhile, the Support rating of ‘5′ considers support from the state or the shareholders to be possible, although timely support in an extreme situation is less certain. — www.theasianbanker.com (May 9 2008)–