KL ratings sustained

KL ratings sustained

KUALA LUMPUR (AFP): European rating agency IBCA has maintained its ratings on Malaysian banks for the next six months but may review the situation if the regional currency turmoil persists, reports said Tuesday.

"We have not gone negative on Malaysian banks. If the regional currency crisis is resolved fairly quickly, there is no need for a review," IBCA regional research director in Singapore, Sam Chin, told The Star daily.

"But if the crisis drags on, then we will have to assess its impact on Malaysian banks and see whether a downgrade is warranted," he said.

Chin pointed out that the exposure of local banks' to big infrastructure projects was a major factor in the currency situation.

"Many of these big infrastructure projects require external financing in U.S. dollars. Because of the fall in the ringgit, many of these projects may have to be deferred or may be no longer viable," he said.