Page 213 - EXIM-Bank_Annual-Report-2023

Management Discussion and Analysis Ensuring Sustainability Commitment to Lead Upholding Accountability Financial Statements 211

Notes to the fiNaNcial statemeNts

43. FINANCIAL rISk MANAGEMENT PoLICIES (cont’d)
Credit quality by class of financial assets (cont’d)

Credit quality of loans, advances and financing excluding ECR debtors
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

2023
Commercial customer
Risk Rating 3 216,825 - - 216,825
Risk Rating 4 96,914 - - 96,914
Risk Rating 5 1,276,842 - - 1,276,842
Risk Rating 6 706,333 64,043 - 770,376
Risk Rating 7 - 34,849 - 34,849
Risk Rating 9 - 1,531 - 1,531
Impaired - - 2,054,175 2,054,175
2,296,914 100,423 2,054,175 4,451,512

Sovereign
Risk Rating a- - - - -
Risk Rating bb- - 15,455 - 15,455
Risk Rating ccc+ - 1,609 - 1,609
Risk Rating ccc- - 227,691 - 227,691
- 244,755 - 244,755

2,296,914 345,178 2,054,175 4,696,267