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.