KUALA LUMPUR (May 11): The proposed sale of a minority interest stake in Affin Hwang Investment Bank Bhd to Daiwa Securities Group Inc will have no impact on the former’s AA3/Stable/P1 financial institution ratings, said RAM Rating Services Bhd.
“We believe that the deal, if materialised, will strengthen the existing partnership between Affin Hwang and Daiwa as well as their respective capabilities,” said RAM co-head of financial institution ratings Sophia Lee in a statement today.
The local ratings agency also believes that the investment bank will continue to enjoy “extraordinary support” from its ultimate parent Lembaga Tabung Angkatan Tentera (LTAT).
Affin Hwang is a wholly-owned subsidiary of Affin Holdings Bhd, which in turn is 35.28%-owned by substantial shareholder LTAT.
At midday break, Affin (fundamental: 1.1; valuation: 2.25) shares were traded unchanged at RM2.92, with 17,600 shares done.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)