Published on 03 Sep 2021.
One of the key highlights of RAM’s recently released 1H 2021 Corporate Default and Rating Transition Study is that most of the RAM-rated issuers have remained resilient through the pandemic. Amid lockdowns and weak prospects, overall downgrades have naturally trumped upgrades. But the trend is not any worse off than that of pre-pandemic years (see Exhibit). As at end-June 2021, 80% of RAM’s portfolio are rated AA or higher, with over 90% on stable outlook. No defaults were recorded while only 5 issuers downgraded. This illustrates the ability of large corporates to better withstand prolonged economic fallouts, given stronger balance sheets and unhindered access to finance.
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Established in 1990, RAM Ratings is a leading credit rating agency registered under the Securities Commission’s Guidelines on Registration of Credit Rating Agencies, 2011. In addition to the provision of credit ratings for corporate bonds and sukuk and their issuers, RAM Ratings also provides research and publications on Islamic finance, fixed income and macro-economic and industry analysis as well as data analytics relating to credit risk, counterparty assessments and other related domains.
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