CIMB Thai Bank pcl's plans to raise 3.7 billion baht (RM1.64bil) through a rights issue is credit positive as it will help it withstand slower economic growth.
Moody's Investors Service, which has rated it at 'Baa2 stable, ba2', said the rights will increase the bank's common equity Tier 1 ratio (CET1) to 10.7% from 9.1%, which was closer to the Thai banking sector's average CET1 ratio of 13.1%.
"The capital raised is credit positive for CIMB Thai because it will strengthen its loss-absorption buffer to withstand slower economic growth, rising asset quality pressures and elevated credit costs affecting Thai banks," the rating agency said in a statement here on Monday.
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Moody's Investors Service, which has rated it at 'Baa2 stable, ba2', said the rights will increase the bank's common equity Tier 1 ratio (CET1) to 10.7% from 9.1%, which was closer to the Thai banking sector's average CET1 ratio of 13.1%.
"The capital raised is credit positive for CIMB Thai because it will strengthen its loss-absorption buffer to withstand slower economic growth, rising asset quality pressures and elevated credit costs affecting Thai banks," the rating agency said in a statement here on Monday.
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