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

KEY RATING DRIVERS
IDR, SUPPORT RATING, SUPPORT RATING FLOOR AND SENIOR DEBT
MEXIM's IDR, Support Rating Floor and senior debt rating are equalised with that of the Malaysian sovereign (A-/Stable). This and MEXIM's Support Rating of '1' reflect Fitch's expectations of an extremely high probability of state support being available to MEXIM, if necessary.

This expectation stems from MEXIM's unique policy role to support and develop the export oriented sector, as well as the government's 100% ownership of the bank. State support has also been demonstrated in the past through capital injections and government funding assistance. MEXIM's modest size in proportion to the overall size of Malaysia's GDP and the domestic banking sector implies that the sovereign should have the ability to support the bank in times of need.

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 Stable
Support Rating affirmed at '1'
Support Rating Floor affirmed at 'A-'
Ratings on senior unsecured notes affirmed at 'A-'