AmBank, AmInvestment Bank ratings unaffected by bid (1015)

SINGAPORE: Standard & Poor's Ratings Services' counterparty credit ratings on AmBank (M) Bhd (AmBank; BBB+/Stable/A-2) and AmInvestment Bank Bhd (BBB+/Stable/A-2) were unaffected by AMMB Holdings Bhd's (AMMB; unrated) proposed acquisition of MBF Cards (Malaysia) Sdn Bhd.
The
ratings agency said on Wednesday that AMMB, the parent group of AmBank
and AmInvestment, would acquire MBF Cards, the largest non-bank credit
card company in Malaysia, for RM623mil, subject to adjustment on
completion, or a price-to-book multiple of 2.9 times.
This cash
transaction will be funded by a combination of internal funds and
borrowings, and will not impact AMMB's share capital.
There is also no immediate impact on the financial profiles of AmBank and AmInvestment Bank.
The
acquisition is scheduled to be completed before end 2012 and forms part
of the group's long-term strategy to enhance revenue and cost
synergies. - Reuters