Fitch may upgrade Malaysian, Thai, RI bank ratings<\/p>\n
Stephanie Phang and Kate Mayberry, Bloomberg, Singapore<\/p>\n
Banks in Malaysia, Thailand and Indonesia may have their
\nratings raised by Fitch Ratings Ltd. as the region's financial
\nsystems recover from the Asian financial crisis and stronger
\neconomies lift country ratings.<\/p>\n
\"Most Asian banking systems are still in an upswing from the
\ncrisis of the late 1990s, with sovereign rating upgrades lifting
\nthe ceiling and allowing bank ratings to rise,\" Fitch said in a
\nstatement today, citing David Marshall, its head of Asian
\nfinancial institutions.<\/p>\n
Fitch and larger rivals Standard & Poor's and Moody's
\nInvestors Service have become more optimistic about the Asian
\nbanking industry's prospects as expanding economies fuel demand
\nfor loans, boosting profit. Mergers, asset clean-ups and more
\nprudent loan management have also strengthened banking systems in
\nthe region since the crisis.<\/p>\n
\"The improvement in the Asian economies has helped boost
\ngrowth in loans as well as lowering provisions in Malaysia and
\nIndonesia,\" said Stephanie Lee, who helps manage assets worth
\nabout US$10 billion in Asia at Aberdeen Asset Management in
\nSingapore. \"The entire banking industry in Asia should re-rate.\"
\nThe banks that Lee owns include Public Bank Bhd., Malaysia's No.4
\nlender, and Indonesia's PT Bank NISP.<\/p>\n
A devaluation of the Thai baht in 1997 caused currencies
\nacross Southeast Asia to tumble, leaving many borrowers unable to
\nrepay their debts and banks laden with bad loans. The resulting
\nfinancial crisis crimped economic growth across the region.<\/p>\n
This year, economic growth in Asia, excluding Japan and the
\nIndian subcontinent, is expected to accelerate to 7.1 percent,
\nthe fastest since the 1997 crisis, the World Bank said earlier
\nthis month. In April, the Washington-based organization predicted
\ngrowth of 6.3 percent.<\/p>\n
On Nov. 9, Fitch raised the credit rating of Malayan Banking
\nBhd., Malaysia's largest lender by assets, one level to A-, a day
\nafter it lifted the country's sovereign rating.<\/p>\n
In October, the ratings company raised to positive the outlook
\nfor eight Indonesian banks, including PT Bank Mandiri, PT Bank
\nRakyat Indonesia and PT Bank Negara Indonesia.<\/p>\n
Standard & Poor's raised its ratings on Bangkok Bank Pcl,
\nThailand's biggest lender, and three of its rivals on June 24,
\nciting faster economic growth, increased lending and a decline in
\nbad assets.<\/p>\n
It was the first time S&P had done so since the 1997 crisis.
\nMoody's lifted its ratings on Thai Military Bank Pcl on Sept. 1
\nafter a merger with the local unit of Singapore's biggest bank
\nand Industrial Finance Corp. made it Thailand's No. 5 lender.<\/p>\n
\"The banks' recovery cycle is completed, they should go back
\nto their pre-crisis ratings,\" said Kelvin Miranda, who helps
\nmanage about $180 million at Asian Asset Management Sdn. in Kuala
\nLumpur.<\/p>\n
A high level of bad debts is hurting the outlook for
\nPhilippine banks, Fitch said.<\/p>\n
\"The Philippines stands in contrast to the positive trend with
\nconcerns at the sovereign level over the fiscal policy outlook
\nand banks facing some negative rating pressures as they grapple
\nwith heavy non-performing loans,\" Fitch cited Marshall as saying.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fitch-may-upgrade-malaysian-thai-ri-bank-ratings-1447893297",
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