Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : BCOM, Great earnings, and a 2 for 1 split . -- Ignore unavailable to you. Want to Upgrade?

To: Tulvio Durand who wrote (66)	2/27/1998 8:08:00 AM
From: Kip518	Read Replies (1) \| Respond to of 182

Standard & Poor's also revised its outlook on the long-term counterparty ratings of RHB Bank Berhad to negative from stable while lowering the bank's short-term counterparty ratings from 'A-2'to 'A-3'. The recent merger talks between RHB Bank and the Bank of Commerce [Nasdaq:BCOM - news] have not been factored into this ratings revision. Standard & Poor's will continue to survey the ongoing merger talks and make the appropriate response when details are more forthcoming. The change in the short-term ratings reflects RHB Bank's reliance on interbank borrowings and interest-sensitive funds for funding purposes. Standard & Poor's is concerned that in a rising interest rate environment, RHB Bank may have to bear higher funding costs. RHB Bank also is experiencing declining profitability, with pre-tax profit in the six months to Dec. 31, 1997, falling by about one-sixth compared with the first half of the year. Further, its ultimate shareholders (Rashid Hussein Berhad) lessened capacity to substantially participate in future capital raisings of the bank, due to its high borrowings-to-net tangible assets gearing, continues to be of concern. RHB Bank's asset quality remains satisfactory, although it has weakened slightly with NPLs rising from 2.0% on a six-month arrears basis in June 1997 to 3.1% on a three-month arrears basis in December 1997. RHB Bank also has strengthened its capital base in 1997, achieving a 7.31% equity-to- assets ratio. <i/> From: biz.yahoo.com