RAM Ratings assigns AAA/Stable/P1 ratings to Maybank’s RM10 bil Commercial Paper/Medium-Term Note Programme

Published on 15 May 2023.

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RAM Ratings has assigned AAA/Stable/P1 ratings to Malayan Banking Berhad’s (Maybank or the Group) RM10 billion Commercial Paper/Medium-Term Note Programme. The ratings reflect the facility’s ranking as a direct, unsubordinated, unconditional and unsecured obligation. Concurrently, the ratings of its existing sukuk/debt facilities have also been reaffirmed (listed in Table 1).

Maybank (rated AAA/Stable/P1) is the fourth-largest banking group in ASEAN and the biggest in Malaysia. The Group has a commendable universal banking franchise and a wide footprint throughout the ASEAN region. Its Islamic banking, investment banking and insurance subsidiaries are among the leaders in their respective segments. Commanding 18% of the domestic market’s deposits (including investment accounts), Maybank is systemically important to Malaysia. 

Maybank made substantial provisions for COVID-19-related credit risk in the last three years. With RM1.7 bil of unreleased management overlays as at end-December 2022, sound pre-provision earnings and healthy capitalisation, the Group has ample financial buffers to weather credit headwinds from heightened inflationary pressures and market volatility. As at end-December 2022, Maybank’s loan loss coverage (including regulatory reserves) strengthened to 154% (end-December 2021: 120%). Despite some fair value losses on financial instruments, the Group’s common equity tier-1 capital ratio (post dividend) remained a sturdy 14.8%.

The Group’s funding and liquidity profile is solid given its entrenched deposit franchise which affords it a diversified depositor base. Earnings in FY Dec 2023 will benefit from the absence of Cukai Makmur but expected net interest margin contraction and investments to support strategic initiatives under the Group’s M25+ Strategy will limit potential upside. As the banking industry gradually evolves, Maybank is well-placed to fend off challenger banks in the digital space, given its established digital infrastructure and platforms and continued investments to enhance IT capabilities.

Table 1: Ratings of Maybank and its sukuk/debt issues

Note: The newly established RM10 bil Commercial Paper/Medium-Term Note Programme (2023/2030) will replace the RM10 bil
Commercial Paper/Medium-Term Note Programme (2016/2023) which will mature in December 2023.


Analytical contacts
Chan Yin Huei 
(603) 3385 2498

Julian Chan
(603) 3385 2486


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2023 by RAM Rating Services Berhad

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