FSDH Merchant Bank Limited has been assigned an “A-” rating by Agusto & Co. This rating expires 30 June 2019.
The rating assigned to FSDH Merchant Bank Limited (‘FSDH’ or ‘the Bank’) reflects the Bank’s good capitalisation, strong liquidity profile and improving profitability. The rating also reflects FSDH’s prudent and experienced management team with good succession planning as seen in the transition in leadership in 2017. Nonetheless, FSDH Merchant Bank’s rating continues to be constrained by concentration in its loan portfolio which has rendered it vulnerable to adverse changes in the performance of its obligors and lending sectors, particularly in a weak macroeconomic environment. The Bank’s current high level of non-performing loans to total loans is a reflection of this vulnerability.
The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.
This rating release is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit given to Agusto & Co.
This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.