CIMB's acquisition of BoC to diversify operations: Moody's

Moody's gave CIMB Bank Bhd's plan to acquire a 59.98 per cent stake in the Philippines Bank of Commerce positive rating.

Moody's says CIMB's acquisition of the Philippines Bank of Commerce would further diversify its operations through access to significantly underutilised deposit funds.

It only has a minimal impact on its adequacy and liquidity profiles.

"We do not expect this acquisition to have any material impact on CIMB Bank's financialprofile,"Moody's said.

Moody'snoted that it will cost CIMB Bank only three per cent of the cash and short-termfunds it had end-December, a relatively small and manageable amount.

Managing Director/CEO Datuk Adissadikin Ali "Also, at 1.14 times Bank of Commerce's book value, the goodwill arising from this acquisition is limited and will not significantly affect CIMB's capital adequacy," it added.

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