Fitch Affirms Hong Leong Bank's Ratings with Stable Outlook
Fitch Ratings on Friday affirmed Hong Leong Bank's (KLSE:HLBANK) Long-Term Issuer Default Rating at BBB+ with a stable outlook and Short-Term IDR at F2.The rating agency cited the Malaysian lender's conservative underwriting standards, strong asset quality, and stable deposit-funded franchise.Fitch said the bank continues to benefit from resilient earnings, adequate capitalisation and one of the strongest loan quality profiles among Malaysian banks, supported by its focus on secured retail lending. It also noted improving digital capabilities and affirmed the bank's Viability Rating at bbb+ and Government Support Rating at bbb-.Fitch said downside risks include a sustained deterioration in loan quality or profitability, while an upgrade is unlikely unless Malaysia's sovereign rating is raised, given Hong Leong Bank's predominantly domestic operations.
