RAM franchise remains strong in M’sian debt capital market
Posted on May 10, 2011, Tuesday
KUCHING: The Malaysian economy’s forward march gathered substantial momentum in 2010, on the wave of widespread recovery after the global financial mayhem of the year before.
Notably, the domestic banking fraternity had strengthened immeasurably after having learnt the harsh lessons from the last crisis in the late 1990s, hence becoming more resilient and better equipped to deal with such external shocks.
Against this backdrop, RAM maintained its franchise in the debt capital market, delivering yet another commendable performance in 2010.
RAM Rating Services Bhd (RAM Ratings) completed the ratings of 157 debt issues with an aggregate gross programme value of RM57.5 billion. RAM Ratings announced the prospective issuance of 19 debt issues worth RM29.9 billion last year, including 10 new sukuk valued at RM15.6 billion.
Among the RAM Ratings-rated debutantes were Malaysian Airports Capital Bhd, Padiberas Nasional Bhd, ADCB Finance (Cayman) Ltd and National Bank of Abu Dhabi PJSC – which joined the ranks of regulars such as Cagamas Bhd, Hong Leong Bank Bhd, United Overseas Bank (Malaysia) Bhd, OCBC Bank (Malaysia) Bhd and Sunway Holdings Bhd.
In 2010, there was zero default in RAM Ratings’ rated portfolio. The results of its default study reports to date have been consistent across time and across different rating categories. This also reaffirms the quality and usefulness of its ratings.
Meanwhile, RAM Ratings continued participating in and contributing to several international road shows and exhibitions, including those of the Malaysia International Islamic Financial Centre in the United Arab Emirates and Saudi Arabia.
As part of its contribution to the country’s growth, RAM Ratings participated in the National Key Economic Areas (NKEA) Labs facilitated by the Performance Management and Delivery Unit (Pemandu), to identify the contributing factors and strategise on how to realise Malaysia’s goal of becoming a high-income nation by 2020.
On the international front, 2010 was a defining year for RAM Ratings (Lanka) Ltd (RAM Ratings Lanka), which appointed two renowned Sri Lankan nationals as independent directors.
One of them had been an assistant governor of the Central Bank of Sri Lanka before her retirement while the other is a member of the Monetary Policy Consultative Committee of the Central Bank.
RAM Ratings Lanka remained the market leader in the rating of registered finance companies and insurance firms in its home base.
Overall, the RAM Group achieved its 19th year of profitability in 2010, with a pre-tax profit of RM4.92 million on the back of RM40.78 million of revenue. Moving forward, the RAM Group would continue expanding its domestic and international presence by pursuing opportunities within similar business realms.
Apart from this, it would also remain firmly committed to the development of the Malaysian debt capital market.
“RAM is dedicated to upholding its role in all its endeavours, in accordance with the principles of integrity, transparency, quality and good governance,” said executive deputy chairman of RAM Holdings Bhd, Tan Sri C Rajandram.