Credit rating organization MARC
recently affirmed CIMB Islamic Bank Berhad’s (CIMB Islamic)
financial institution (FI) rating at AAA / MARC-1.
Additionally, the
organization gave an AA+IS to CIMB Islamic’s RM5.0 billion Basel
III-compliant Tier 2 Junior Sukuk program and RM2.0 billion Tier 2 Junior
Sukuk program.
CIMB Islamic is a wholly owned
subsidiary of CIMB Bank Berhad. It acts as the parent company’s
banking arm and uses its shared infrastructure and branding. It is the second
largest domestic Islamic bank, as solidified by its 10.9 percent market share
of Islamic banking assets in end-June 2016.
However, the bank’s
financing growth has continued to lag the domestic Islamic banking industry’s
average of 12.2 percent growth. MARC notes that this implies a more cautious
stance to lending.
The ratings given by MARC signify the
credit strength of CIMB Islamic’s parent company, CIMB
Bank Berhad. Any future MARC assessment revisions would lead to a change in the
bank and its program ratings.
