[RAM] RAM Ratings assigns ratings to RHB Islamic's proposed RM5 bil sukuk programme

RAM Ratings has assigned ratings to RHB Islamic Bank Berhad’s (RHB Islamic or the Bank) proposed RM5 billion Multi-Currency Sukuk Wakalah Programme (see Table 1). 

RHB Islamic operates as RHB Bank Berhad’s (the Group, rated AA₁/Stable/P1) Islamic banking arm under a leveraged model. Given its strategic importance, we view the likelihood of support for RHB Islamic from the Group as ‘very high’.



The Tier-2 Subordinated Sukuk is rated one notch below RHB Islamic’s long-term AA₁ financial institution rating (FIR) to reflect its subordinated status relative to the Bank’s senior unsecured obligations. The Additional Tier-1 Sukuk rating is rated three notches below RHB Islamic’s long-term FIR in view of its subordinated nature, fully discretionary distribution payments and our assessment that the Bank has a ‘high’ capital buffer against the loss absorption trigger, as outlined in RAM’s rating methodology for bank securities.

Over the past three years, RHB Islamic’s return on risk-weighted assets averaged 3.3%. Accounting for 28% of the Group’s pre-tax profits, the Bank remained a major contributor to the latter’s financing book (end-September 2025: 46% of the Group’s domestic financing). Asset quality is healthy, with gross impaired financing (GIF) and GIF coverage ratios of 1.1% and 120%, respectively. The Bank’s common equity tier-1 capital ratio was a strong 14.7% at end-September 2025.


Analytical contacts
Lee Yee Von
(603) 2708 8217
yeevon@ram.com.my

Sophia Lee
(603) 2708 8211
sophia@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my