Page 204 - EXIM_AR2021

202 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

42. financial risk management POlicies (cOnt’D.)

Credit quality by class of financial assets (cont’d.)
Credit quality by loans, advances and financing
For commercial exposures, the Group and the Bank use ten risk grades with rating ‘1’ representing the lowest risk. Meanwhile
for Sovereign exposures, the Group and the Bank use five risk grades with rating ‘aaa’ representing the lowest risk. The
exposure under each of these risk grades is as follows:

Stage 1 Stage 2 Stage 3 Total
RM’000 RM’000 RM’000 RM’000

2021
Commercial customer
Risk Rating 3 315,047 - - 315,047
Risk Rating 4 134,375 15,249 - 149,624
Risk Rating 5 570,293 21,780 - 1,492,073
Risk Rating 6 6,451 434,823 - 441,274
Risk Rating 7 603 280,192 - 280,795
Risk Rating 8 - 152,637 - 152,637
Risk Rating 9 - 2,188 - 2,188
Impaired - - 2,096,575 2,096,575
1,026,769 1,806,869 2,096,575 4,930,213

Sovereign
Risk Rating b- - 2,109 - 2,109
Risk Rating b+ - 18,590 - 18,590
Risk Rating ccc - 317,955 - 317,955
- 338,654 - 338,654

1,026,769 2,145,523 2,096,575 5,268,867