MARC upgraded China Construction Bank Malaysia's rating to AAA as ECRL loan boosted loan book

KUALA LUMPUR: Credit rating agency MARC Ratings has raised China Construction Bank Malaysia's (CCBM) long-term financial institution rating to AAA from AA+ with a stable outlook. The upgrade comes after CCBM's loan book expanded by 19.1% to RM3.2 billion last year, primarily due to financing linked to the East Coast Rail Link project.

While economic challenges may temper lending growth in the short to medium term, MARC maintains that CCBM is well-positioned to aid business expansion, strengthened by a solid total capital ratio of 48.3% at year-end 2025. However, the capital profile is somewhat tempered by a high level of dependence on top five borrowers, which make up 57% of total loans.

MARC's rating upgrade is a reflection of the bank's improved perception of support from its parent, China Construction Bank Corp. This support is further solidified by CCBM's long-standing presence in Malaysia, its pivotal role in facilitating CCB's cross-border operations, and the bank's growing importance within the group. CCB's explicit commitment to maintain full ownership and offer ongoing support bolsters MARC's expectations of a very high likelihood of extraordinary assistance if needed.

The bank also benefits from seamless operational integration, shared branding, systems, resources, and customer networks, along with access to experienced personnel. Additional backing is evident in the continued provision of capital, funding, and liquidity, including an outstanding subordinated intragroup loan of RM834.9 million as of year-end 2025.

At year-end 2025, CCB remains the world's third-largest bank by assets, boasting total assets of US$6.5 trillion.