August 13, 2009

Malaysia’s banking industry has been upgraded by BNP Paribas, which said positive Government initiatives and an improving economy are helping to curb bad debts and revive lending growth.BNP raised its ratings for Bumiputra-Commerce Holdings Bhd, AMMB Holdings Bhd and EON Capital Bhd to “buy” from “reduce”.

It increased the rating on the industry to “positive” from “negative”.“A sharp credit deterioration scenario is unlikely to play out, aided by coordinated and targeted assistance by the Government,” BNP Paribas analyst Ng Wee Siang said in a report yesterday.“The coast is clear on credit quality” and loans growth was set to strengthen in the coming months.