S&P: Bumiputra-Commerce on watch

Standard & Poor's said it placed its BBB-/A-3 counterparty credit ratings on Bumiputra-Commerce Holdings Bhd. (BCHB) on CreditWatch with negative implications, following BCHB's announcement that it will acquire Southern Bank Bhd. (BB(pi)).

At the same time, the agency said it revised its outlook on the BBB+/A-2 rating on Bumiputra-Commerce Bank Bhd. to developing from stable.

Bumiputra-Commerce Bank has a bank fundamental strength rating of C+, the agency added.

The outlook revision on Bumiputra-Commerce Bank acknowledges that the commercial banking arm of BCHB stands to benefit from the improved diversity in future income profile over the longer term, S&P said.

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