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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: B Tate who wrote (14)	12/22/1997 11:29:00 AM
From: Thomas Haegin	Respond to of 9980

Thanks to BT from Kuala Lumpur << Count me in >> Initial support is way beyoond what I expected! Thanks a lot for checking in. Thomas

To: B Tate who wrote (14)	12/22/1997 11:30:00 AM
From: Thomas Haegin	Respond to of 9980

Repost: S&P LOWERS RATINGS OF MALAYAN BANKING BERHAD, OUTLOOK NEGATIVE Futures World News - December 22, 1997 07:46 Melbourne, Australia-Dec. 22-FWN--STANDARD & POOR'S (S&P) today lowered its long-term counterparty rating on Malayan Banking Berhad (Maybank) to single-'A' from single- 'A'-plus. The 'A-1' short-term counterparty rating and the negative outlook assigned to Maybank remain unchanged. The rating assigned to Maybank's subordinated notes is lowered to single-'A'-minus from single-'A'. The rating actions reflect S&P's view that the economic slowdown in Malaysia and surrounding countries will be more severe than originally anticipated. Maybank's profitability and asset quality is expected to be impacted to such a degree that the single-'A'-plus long-term rating is no longer deemed appropriate. S&P anticipates Maybank's non-performing loans will increase by at least half by the end of calendar 1998. As Malaysia's largest bank with an approximate 20% market share of commercial banking assets, Maybank is unlikely to be able to avoid the consequences of the economic downturn. The projected slowdown in economic growth is expected to result in more difficult conditions for Maybank's customer base, leading to weakening asset quality and reduced business opportunities, S&P said. The anticipated property oversupply, stock market meltdown, and recent ringgit depreciation is likely to compound the challenges facing the banking and finance sector. The property sector appears to be particularly overbuilt in the office, high-cost residential apartments, and shopping malls subsectors. The nearly 50% fall in the stock market and more than 30% fall in the ringgit/U.S. dollar exchange rate since July 1, 1997, have impacted share financing and underhedged foreign-currency borrowers, respectively. Maybank itself has been able to minimize direct foreign-exchange losses because of effective risk management. Over recent years, Maybank has been actively engaged in expanding its business activities outside Malaysia into surrounding Asia. These markets also have been subject to a considerable degree to volatility and are expected to also contribute less positively to Maybank's credit profile. S&P expects Maybank's asset quality and profitability will not be able to be sustained at the previously high levels that supported the higher rating. ------------End---------------

To: B Tate who wrote (14)	12/23/1997 11:19:00 AM
From: Worswick	Read Replies (2) \| Respond to of 9980

I wonder BTate if you could think about sharing your perception of what is happening in Malaysia at this moment? What is the mood there? I wonder if there is any feeling that this current crisis will turn around in six months? a year? two years? It would seem to those of us in colder climes (at the moment it is snowing outside) that with a 30% to 50% currency advantage that Malaya could whip the pants off any disk drive, or chip maker on earth with the huge cost advantage of the ringitt factored into the production equation. AT THAT ONE WONDERS WHETHER THIS WHOLE ASIAN CRISIS WON'T BALANCE OUT AS A GIGANTIC CURRENCY DOWNDRAFT WHICH IS ONLY TEMPORARY. We wonder on the front lines out there what the fiscal climate is like? Seen from 18 hours away from here on Singapore Airlines it looks like this is either the best time in decades to buy Malaya, or the flat out worst.