OREANDA-NEWS. Fitch Ratings has assigned Malayan Banking Berhad's (Maybank) multi-currency medium-term note programme (MMTN) a senior unsecured rating of 'A-'. The programme was upsized to USD15bn from USD5bn. The bank can issue both senior and subordinated notes under the MMTN, either directly or through its Hong Kong, Singapore or other branches.

KEY RATING DRIVERS

The programme rating is at the same level as Maybank's Long-Term Issuer Default Rating (IDR). Fitch stresses that this rating is assigned to the programme and not to the notes issued under the programme. There is no assurance that the notes issued under the programme will be assigned a rating, or that the rating assigned to a specific issue under the programme will be at the same level as the programme rating.

RATING SENSITIVITIES

The programme rating is sensitive to changes in Maybank's Long-Term IDR, currently on Negative Outlook. The Negative Outlook was retained at the time of the last annual review, reflecting rising risks to banking sector operating conditions and asset quality from economic uncertainty in China; declining commodity prices; and financial market volatility including a sharply depreciating currency, exacerbated by capital market outflows.

Cyclical and commodity-driven risks to asset quality remain, and Maybank's gross impaired-loan ratio had weakened to 1.86% by end-2015 from 1.56% at end-June 2015. Against this, Maybank's improved 12.0% fully loaded CET1 ratio at end-2015 (end-June 2015: 10.9%) provides a stronger buffer against asset-quality pressures.

For more details on the drivers and sensitivities of Maybank's ratings and credit profile, see "Fitch Affirms Maybank at 'A-', Hong Leong Bank at 'BBB+' ", dated 9 September 2015, and Maybank's full rating report, dated 17 November 2015, available at www.fitchratings.com.

Maybank's other ratings are as follows:
- Long-Term Foreign-Currency IDR 'A-'; Outlook Negative
- Short-Term IDR 'F2'
- Long-Term Local-Currency IDR 'A-'; Outlook Negative
- Viability Rating 'a-'
- Support Rating '2'
- Support Rating Floor 'BBB'