OREANDA-NEWS. Fitch Ratings has today revised Export Import Bank of Malaysia Berhad's (MEXIM) Outlook to Stable from Negative, while affirming its Long-Term Foreign Currency Issuer Default Rating (IDR) at 'A-'. A full list of rating actions is at the end of this rating action commentary.

The rating action follow the revision of Malaysia's Outlook to Stable from Negative and the affirmation of its 'A-' Long-Term Foreign-Currency IDR and 'A' Long-Term Local-Currency IDR.

KEY RATING DRIVERS
IDR, SUPPORT RATING, SUPPORT RATING FLOOR AND SENIOR DEBT
MEXIM's IDR and Support Rating Floor (SRF) are equalised with that of the Malaysian sovereign. Its ratings, including the Support Rating (SR) of '1' are underpinned by Fitch's expectation of an extremely high probability of extraordinary state support for MEXIM during times of need.

This expectation stems from the government's 100% ownership of the bank and MEXIM's unique policy role to support and develop the export-oriented sector, which is an important driver of Malaysia's economy. State support has also been demonstrated in the past through capital injections and government funding assistance. The sovereign's ability to provide support is likely to be supported by MEXIM's modest size in proportion to the overall GDP and the domestic banking sector.

The Stable Outlook on MEXIM's ratings corresponds to the Stable Outlook on the Malaysian sovereign's ratings.

MEXIM's senior notes are rated at the same level as its Long-Term IDR. This is because the notes constitute direct, unsubordinated and unsecured obligations of the bank, and rank equally with all its other unsecured and unsubordinated obligations.

RATING SENSITIVITIES
IDR, SUPPORT RATING, SUPPORT RATING FLOOR AND SENIOR DEBT
The bank's IDR, SR, SRF and senior debt ratings are sensitive to a change in Malaysia's sovereign rating. They could also be downgraded due to a perceived weakening in the propensity of the sovereign to provide support, although such a scenario is unlikely in the near to medium term.

The rating actions are as follows:

MEXIM
Long-Term Foreign-Currency IDR affirmed at 'A-'; Outlook Revised to Stable from Negative
Support Rating affirmed at '1'
Support Rating Floor affirmed at 'A-'
Ratings on senior unsecured notes affirmed at 'A-'