Page 208 - EXIM-Bank_Annual-Report-2022

206 eXIM BANK MALAYsIA ANNUAL REPORT 2022

Notes to the fiNaNcial statemeNts

44. FINaNCIaL RISk MaNaGEMENT POLICIES (cont’d.)
Credit quality by class of financial assets (cont’d.)

Credit quality of 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
2022
Commercial customer
Risk Rating 3 215,470 - - 215,470
Risk Rating 4 132,357 - - 132,357
Risk Rating 5 623,833 398,426 - 1,022,259
Risk Rating 6 467,154 362,451 - 829,605
Risk Rating 7 - 158,879 - 158,879
Risk Rating 9 - 2,129 - 2,129
Impaired - - 2,024,493 2,024,493
1,438,814 921,885 2,024,493 4,385,192

Sovereign

Risk Rating b+ - 17,354 - 17,354
Risk Rating ccc+ - 1,880 - 1,880
Risk Rating ccc- - 277,076 - 277,076
- 296,310 - 296,310
1,438,814 1,218,195 2,024,493 4,681,502