KUALA LUMPUR (Oct 7): Moody's Investors Service assigned an A3 rating to RHB Bank Bhd's US$500 million (about RM2.08 billion ) bonds. The long-term foreign currency senior unsecured debt rating with a stable outlook, is in line with RHB's A3 foreign currency deposit rating.

In a statement today, Moody's said RHB's US$500 million bonds were issued under RHB's US$5 billion euro medium term note programme. Moody's said the US$500 million bonds with a coupon rate of 2.503% a year, would mature in October 2021.

"The A3 foreign currency senior unsecured debt ratings of RHB Bank could be upgraded, if both these conditions are met: (1) Malaysia's sovereign rating is upgraded; and (2) the bank demonstrates sustained improvements in its stand-alone creditworthiness, such as an improved funding profile, materially lower impaired loans ratio, and improved capital adequacy.

"The rating could be downgraded, if the bank experiences a sharp slippage in credit quality, pushing up materially, its impaired loan ratio, and decreasing its impaired loans coverage," Moody's said.

At 2:35 p.m., RHB shares rose four sen or 0.9% to RM4.64, for a market value of RM18.53 billion. The stock saw 257,100 shares traded.