Monday, June 6, 2011

RHBCap to be biggest beneficiary: Moody's

RHB Capital Bhd’s banking unit would be the biggest beneficiary if the group is taken over by either Malayan Banking Bhd or CIMB Group Holdings Bhd, Moody’s Investor Service said in a report today.

That’s because a takeover would improve RHB Bank Bhd’s credit profile, analysts Christine Kuo and Karolyn Seet wrote in the report.

The successful buy would likely experience profit pressures in the first two years due to integration costs, they said.

Beyond that, it would gain as a larger combined bank would likely enjoy a leading market position in Malaysia, bigger customer pool and economies of scale, said the analysts. -- Bloomberg

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