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FITCH AFFIRMS AMBANK AND AMINVESTMENT AT 'BBB

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					  FITCH AFFIRMS AMBANK AND AMINVESTMENT AT 'BBB';
                  OUTLOOK STABLE

Fitch Ratings-Singapore-10 March 2011: Fitch Ratings has affirmed Malaysia-based AmBank (M)
Berhad's (AmBank) and AmInvestment Bank Berhad's (AmInvestment) ratings, including the
Long-term Foreign-Currency Issuer Default Rating (IDR) at 'BBB' with Stable Outlook and
Individual Rating at 'C'. A full breakdown of rating actions is detailed below.

AmBank's ratings reflect its reasonable franchise, satisfactory earnings base and improved financial
profile. They also incorporate Fitch's expectations that the bank's capital and funding will
strengthen and that its loan portfolio will be better diversified over the medium term. Positive rating
action may result from a significant improvement in AmBank's funding profile, loan diversity and
core capital buffer. However, as Fitch believes this to be a long-term prospect, it has decided to
keep the Rating Outlook Stable.

Fitch expects AmBank to maintain its underlying profitability into the financial year ending March
2012 as favourable economic conditions should help broaden non-interest income businesses and
keep credit costs low. Given ample liquidity in Malaysia and that interest rates are still near
historical lows, the bank is likely to continue raising long-dated wholesale funds. While this would
provide some funding stability, it may lead to its loans/deposits ratio remaining above 90% in the
near term.

AmBank's auto-financing concentration, while still proportionately sizeable at 33% of loans at
end-December 2010, has steadily declined over the past four to five years. This results from its
primary focus on business loans, especially loans to low-risk government-linked corporations and
multinational companies. Due to its emphasis on risk management, AmBank's asset quality has held
up fairly well, even during the 2008/2009 recession in Malaysia, with credit costs easily covered by
its earnings. Unexpectedly material deterioration in asset quality leading to capital impairment
would be negative for the bank's ratings, although Fitch believes this to be unlikely in the near term
given Malaysia's favourable economic prospects.

While earnings retention may be sufficient to support balance-sheet expansion, AmBank's
consolidated core Tier 1 capital adequacy ratio (CAR, excluding hybrids) of 6.7% at end-December
2010 may continue to be below the 9% peer-average. Fitch notes that the transfer of AmIslamic
Bank Berhad - a wholly-owned subsidiary of AmBank - to its parent, AMMB Holding Berhad
(AHB), in February 2011 has improved AmBank's core Tier 1 CAR. Importantly, in order not to
hinder its ability to maintain a reasonable dividend payout ratio, Fitch believes that the bank may
need to keep its core Tier 1 CAR above 7%, which is the new effective minimum prescribed under
Basel III's capital regulations in December 2010.

Fitch has affirmed AmBank's hybrid rating at 'BB+', which is two notches below the bank's
Long-term Foreign-Currency IDR, in accordance with the agency's criteria of rating hybrid
securities and preference shares of financial institutions.

Fitch expects AmInvestment's risk profile and ratings to continue to move in line with AmBank's in
view of the high level of operational integration, even though both banks still operate as separate
legal entities for regulatory reasons. AmInvestment is a key operating division within the larger
AHB group - which in turn functions as a universal bank - focusing on investment banking and
stockbroking businesses.

The list of rating actions is as follows:

AmBank
- Long-term foreign currency IDR affirmed at 'BBB', Outlook Stable
- Short-term foreign currency IDR affirmed at 'F3'
- Individual Rating affirmed at 'C'
- Support Rating affirmed at '3'
- Support Rating Floor affirmed at 'BB+'
- Long-term deposit rating affirmed at 'BBB+'
- Rating on USD-denominated hybrid Tier 1 securities affirmed at 'BB+'

AmInvestment
- Long-term foreign currency IDR affirmed at 'BBB', Outlook Stable
- Short-term foreign currency IDR affirmed at 'F3'
- Individual Rating affirmed at 'C'
- Support Rating affirmed at '3'
- Support Rating Floor affirmed at 'BB+'
- Long-term deposit rating affirmed at 'BBB+'

Contacts:

Primary Analyst
Alfred Chan
Director
+65 6796 7220
Fitch Ratings Singapore PTE Ltd
6 Temasek Boulevard
#35-05 Suntec Tower Four
Singapore 038986

Secondary Analyst
John Tham
Senior Director
+65 6796 7219

Committee Chairperson
Charlene Chu
Senior Director
+86 10 8517 2112

Media Relations: Shivani Sundralingam,          Singapore,     Tel:   +   65   6796   7215,   Email:
shivani.sundralingam@fitchratings.com.

Applicable criteria, "Global Financial Institutions Rating Criteria" dated 16 August 2010;
"Short-Term Ratings Criteria for Corporate Finance", dated 2 November 2010; "Rating Hybrid
Securities" and "Equity Credit for Hybrids & Other Capital Securities", both dated 29 December
2009, are available at www.fitchratings.com.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685
Short-Term Ratings Criteria for Corporate Finance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=568726
Rating Hybrid Securities
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493086
Equity Credit for Hybrids & Other Capital Securities - Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493112

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY
FOLLOWING                       THIS                       LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.     IN   ADDITION,
RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE
ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED
RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT
ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF
INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION
OF THIS SITE.

				
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