Wednesday, May 15, 2002
Malaysian Rating Corporation Berhad (MARC) today announced that it has posted a 51% increase in pre-tax profit to RM3,047,140 for the financial year ended 31 December 2001, on the back of a 31% increase in turnover to RM6,815,425. The Chairman, Encik Mohammad Abdullah attributed the strong performance to increased activity in the bond market, which in turn was driven by improving economic fundamentals, conducive liquidity conditions and low interest rates.
MARC assigned 35 new ratings in the year 2001, comprising 34 corporate and project debt ratings with a total rated value of RM13.58 billion, and one financial institution rating. During the year, MARC also commenced the rating process on a number of asset-backed debt securities proposals following the release of Securities Commission’s Guidelines on the Offering of Asset-Backed Debt Securities in April 2001. MARC believes that securitization will be a key growth driver for the domestic bond market in the coming years, with financial institutions increasingly looking towards CBO/CLO (collaterized bond/loan obligations) transactions and the securitization of auto hire-purchase receivables as a funding option.
The strong demand for Islamic papers witnessed in 1999 and 2000 continued well into 2001. MARC rated a total of 24 Islamic instruments during the year with a total value of RM10.68 billion. MARC International Limited, a Labuan-based wholly-owned subsidiary of MARC, has rated a USD395 million Serial Islamic Lease Sukuk Issuance by First Global Sukuk Inc., a Labuan-incorporated Special Purpose Vehicle (SPV), the first of its kind internationally. The Sukuk is also the first ever global issue of an Islamic capital market instrument listed on the Labuan International Financial Exchange (LFX).
Rating actions in 2001 with regard to MARC’s existing portfolio of rated debt issues were dominated by rating affirmations and reaffirmations with only one downgrade announced during the year. There were no rating upgrades. MARC’s ratings exhibited a high degree of stability in 2001, which is key to building and maintaining investor’s confidence in its ratings.
Looking ahead, the domestic bond market can be expected to remain an important source of financing for the private sector in 2002. There will also be an increasing variety of products in our capital market, including asset-backed and Islamic securities.
MARC remains committed to maintaining high service standards, while adopting an innovative approach towards developing new rating products to meet specific market requirements.
MARC assigned 35 new ratings in the year 2001, comprising 34 corporate and project debt ratings with a total rated value of RM13.58 billion, and one financial institution rating. During the year, MARC also commenced the rating process on a number of asset-backed debt securities proposals following the release of Securities Commission’s Guidelines on the Offering of Asset-Backed Debt Securities in April 2001. MARC believes that securitization will be a key growth driver for the domestic bond market in the coming years, with financial institutions increasingly looking towards CBO/CLO (collaterized bond/loan obligations) transactions and the securitization of auto hire-purchase receivables as a funding option.
The strong demand for Islamic papers witnessed in 1999 and 2000 continued well into 2001. MARC rated a total of 24 Islamic instruments during the year with a total value of RM10.68 billion. MARC International Limited, a Labuan-based wholly-owned subsidiary of MARC, has rated a USD395 million Serial Islamic Lease Sukuk Issuance by First Global Sukuk Inc., a Labuan-incorporated Special Purpose Vehicle (SPV), the first of its kind internationally. The Sukuk is also the first ever global issue of an Islamic capital market instrument listed on the Labuan International Financial Exchange (LFX).
Rating actions in 2001 with regard to MARC’s existing portfolio of rated debt issues were dominated by rating affirmations and reaffirmations with only one downgrade announced during the year. There were no rating upgrades. MARC’s ratings exhibited a high degree of stability in 2001, which is key to building and maintaining investor’s confidence in its ratings.
Looking ahead, the domestic bond market can be expected to remain an important source of financing for the private sector in 2002. There will also be an increasing variety of products in our capital market, including asset-backed and Islamic securities.
MARC remains committed to maintaining high service standards, while adopting an innovative approach towards developing new rating products to meet specific market requirements.