Page 194 - EXIM-BANK-AR20

192 EXIM BANK MALAYSIA
Annual Report 2020

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

2020

Commercial customer
Risk Rating 1 - - - -
Risk Rating 2 274,866 - - 274,866
Risk Rating 3 529,221 87,764 - 616,985
Risk Rating 4 154,336 428,834 - 583,170
Risk Rating 5 193,089 668,280 - 861,369
Risk Rating 6 1,229 315,544 - 316,773
Risk Rating 7 17 236,702 - 236,719
Risk Rating 8 - 67,279 - 67,279
Risk Rating 9 - 2,898 - 2,898
Impaired - - 2,382,477 2,382,477
1,152,758 1,807,301 2,382,477 5,342,536

Sovereign
Risk Rating b- - 2,347 - 2,347
Risk Rating b+ - 19,712 - 19,712
Risk Rating ccc - 339,628 - 339,628
- 361,687 - 361,687
1,152,758 2,168,988 2,382,477 5,704,223