KOTA KINABALU, July 16 (Bernama) -- RAM Rating Services Bhd (RAM Ratings) has reaffirmed the AA1/Stable/P1 ratings of Sabah Development Bank Bhd’s (SDB) debt instruments.
SDB in a statement today said the AA1 rating indicates that the bank has a strong capability to meet its financial obligations, and is resilient against adverse changes in circumstances, economic conditions and operating environments.
The “Stable” outlook reflects RAM Ratings’ expectation that the long-term rating will be unchanged over the immediate term. SDB’s commercial papers are also affirmed at P1, which is the highest short-term rating assigned by the rating agency, indicating a strong capability to meet short-term financial obligations.
“We are confident that with the state’s strong support and a disciplined new leadership team, SDB will be turned around to become a development bank that the state and the people can be proud of,” it said.
The ratings continue to be anchored by Sabah’s very strong likelihood of support for the bank and its debt borrowings - a commitment firmly articulated to RAM Ratings and SDB’s investors.
“The state’s financial capacity is underpinned by its robust fiscal position and cash reserves,” SDB said.
RAM Ratings is the leading and largest credit rating agency in Southeast Asia, and the agency publishes credit ratings to give an independent, forward-looking opinion about an issuer’s ability to repay its financial obligations.
-- BERNAMA
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