RAM Ratings assigns second-highest LECA™ rating to Noblehouse International Trust

Published on 27 Oct 2021.

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RAM Ratings has assigned a LECA™ rating of “LECA2” to Noblehouse International Trust Ltd (Noblehouse or the Company), a full-fledged Labuan Trust Company (LTC) operating in Labuan International Business and Financial Centre (Labuan IBFC). The rating – second-highest on a scale of six – signifies the Company’s strong capacity and competence in fulfilling its performance obligations. 

The rating reflects favourable assessments of Noblehouse’s operating record, staffing and financial standing. The Company is also viewed to have established adequate business infrastructure, governance and risk management practices.

Backed by a 30-year operating track record, the Company is among the largest LTCs in Labuan with a portfolio of more than 200 clients. Noblehouse facilitates the incorporations and registrations of new businesses in Labuan IBFC, and provides a suite of secretarial, administrative, custodial and trustee services.

Its operations are supported by a team of experienced and long-serving staff, with an average service of 14 years. As a family-controlled business, management continuity and succession planning are apparent. However, the Company remains exposed to some degree of key person risk and may lack independent Board oversight.

Noblehouse’s business infrastructure and IT systems corresponds to the complexity and needs of its core functions and sufficiently supports its operations. Guidelines and procedures on routine tasks and scenarios are documented and can be readily accessed by the Company’s staff. 

The Company has sufficient risk management controls in place, expressed through various policies and procedures covering key aspects of its business. These include business continuity, corporate compliance and handling of complaints. In general, no material non-compliance was disclosed by Noblehouse in its last three annual compliance reports.

Presently, Noblehouse is involved in an ongoing court case which poses a contingent liability to the Company. In the meantime, it is business as usual for the Company. This contingent liability is viewed as an event risk, and the Company’s rating will be reassessed accordingly if it materialises.

Noblehouse’s financials show it is profitable and self-sustaining. In FY Dec 2020, the Company posted RM0.74 million of pre-tax profit on the back of RM2.4 million in revenue. As at end-2020, the Company has cash reserves equivalent to approximately four months of operating expenditure. 

LECA™ is an assessment service from RAM Rating Services Berhad for companies based in Labuan IBFC. LECA™ ratings are typically valid for up to 1 year after they are assigned. During this time, the assessment will be monitored by RAM Ratings and any material developments could change the rating assigned. 

For information on LECA™ ratings assigned, visit https://analytics.ram.com.my/LECARating

Analytical contact    
Chuan Shyang Lin
(603) 3385 2536
shyanglin@ram.com.my

 

LECA™ ratings are not an opinion of a company’s specific financial obligations and terms thereof nor the legality and enforceability of the same, nor does it involve any audit by RAM Ratings. The information herein is strictly for information purposes and is not an offer, recommendation, solicitation or advice to buy or sell any investment product, securities or instruments, nor intended to be used as a recommendation to enter into, continue, suspend or terminate any contractual or financial obligation. Nothing in this publication constitutes accounting, legal, regulatory, tax, financial or other investment advice by RAM Ratings. 

RAM Ratings reserves the right to add, remove, withdraw, amend or revise, as it deems fit and without prior notice to users, any detail related to any company for whom it has produced a LECA™ rating and report. Although every reasonable care has been taken to ensure the accuracy, completeness and objectivity of the information contained herein, RAM Ratings makes no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability relating to any losses or damages (direct or indirect) howsoever suffered by any person arising from any reliance on the analysis, views or information contained in this publication.

Published by RAM Rating Services Berhad
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