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RAM Ratings affirms Export-Import Bank of Malaysia’s AAA rating
Published on 24 Feb 2026.
RAM Ratings has affirmed the AAA/Stable/P1 financial institution ratings of Export-Import Bank of Malaysia Berhad (MEXIM or the Bank) and the AAA(s)/Stable rating of the USD1.0 bil Multi-Currency Sukuk Issuance Programme issued by EXIM Sukuk Malaysia Berhad, the Bank’s funding conduit.
MEXIM’s ratings reflect our view that the Bank will continue to benefit from “almost-certain” extraordinary government support, channeled either directly or indirectly, through its parent, Bank Pembangunan Malaysia Berhad (BPMB or the Group). Government backing has historically included recapitalisation, preferential funding schemes and the subscription of the Bank’s RM250 mil redeemable convertible cumulative preference shares. MEXIM became a wholly-owned subsidiary of BPMB, alongside SME Bank Berhad, effective 1 May 2025. BPMB’s ongoing integration strategy – aimed at consolidating selected operational functions across the Group – are expected to strengthen subsidiaries’ ability to better fulfil their policy roles and deliver more cohesive financing solutions.
MEXIM remains the only development financial institution mandated to support and promote and facilitate cross-border activities of Malaysian firms, especially in non-traditional markets underserved by commercial banks.
MEXIM recently obtained the relevant internal approval to execute a major write-off of its legacy impaired exposures, forming part of a broader group-wide initiative to align key credit and risk policies across the three core entities. The associated additional provisioning is expected to weigh heavily on the earnings for FY Dec 2025. However, the clean-up is anticipated to significantly strengthen the Bank’s asset quality metrics, with the gross impaired loan (GIL) ratio projected to decline sharply from 38% as at end-June 2025 to below 10% by end-December 2025, accompanied by an improved GIL coverage ratio of above 120%. Despite the one-time impact to profitability, the Bank’s Basel 1 tier-1 capital ratio is anticipated to remain broadly unchanged from June 2025’s 32.5%, with the earnings impact largely cushioned by the reduction in risk-weighted assets.
Although near-term profitability will weaken due to the write-off, we view the resulting healthier balance sheet positively. The removal of legacy asset drag is expected to enhance MEXIM’s capacity to pursue more disciplined and focused growth. Based on management’s stated strategic priorities and the Bank’s current business pipeline, we expect an improvement in earnings performance in FY Dec 2026 as benefits of the healthier asset base begin to materialise.
Analytical contacts
Chan Yin Huei
(603) 2708 8296
yinhuei@ram.com.my
Jeremy Noel Paul
(603) 2708 8230
jeremy@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
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
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