RAM Ratings affirms Noblehouse International Trust rating at “LECA2”

Published on 13 Jan 2023.

RAM Ratings has affirmed Noblehouse International Trust Ltd’s (Noblehouse or the Company) “LECA2” rating. As the second highest on its scale, the assigned rating signifies the Company’s strong capacity and competence in fulfilling its performance obligations. Noblehouse’s favourable track record, financial standing and operational competencies underpin the rating, alongside sound governance and risk management practices.

As a full-fledged Labuan Trust Company (LTC) operating in Labuan International Business and Financial Centre (Labuan IBFC), Noblehouse provides a suite of secretarial, administrative, custodial and trustee services. With a 30-year operating history, the Company is a family-owned business and among the largest LTCs in Labuan with a portfolio of more than 200 clients.

Noblehouse has a profitable track record. In FY Dec 2021, the Company posted RM0.40 million pre-tax profit on the back of RM2.4 million revenue. As at end-2021, the Company has cash reserves equivalent to approximately four months of operating expenditure.

Our review of the Company’s operations indicates the appropriate risk management controls and processes remain in place, with no material adverse non-compliance noted. That said, we highlight that Noblehouse is involved in an ongoing court case, stemming from its role as nominee to three former corporate clients. This court case, known to us during the initial rating, could potentially pose a contingent liability to the Company should the plaintiff win. The Company’s rating will be reassessed accordingly if this event risk materialises.

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.

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RAM Ratings affirms Noblehouse International Trust rating at “LECA2”