Overall credit profile of rated issuers remains resilient

Published on 30 Aug 2023.

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RAM Ratings has released the 1H 2023 update of the Corporate Default and Rating Transition Study. 

In 1H 2023, RAM’s positive and negative rating actions (including outlook revisions) were balanced at three apiece. In July and August, however, negative actions increased, including two downgrades related to Country Garden Real Estate Sdn Bhd and its China-based ultimate parent company (Country Gardens Holdings Company Limited) due to the latter’s non-payment of bond coupons in August 2023. These tipped the negative-to-positive rating action ratio to 2:1 (from 1:1). 

Despite the recent negative rating actions, the proportion of entities currently on negative or positive outlook remained largely balanced at about 5% vs. 4%. With most of the entities on positive outlook scheduled for annual reviews in the second half of 2023, the overall negative-to-positive actions could resume a more balanced (or even positive) outcome for the rest of the year. 

Overall, the credit profile of RAM’s rated portfolio remains robust. About 80% carry AA3 or higher ratings, indicating strong capacity to meet debt obligations on a timely basis.


Analytical contacts
Chuan Shyang Lin
(603) 3385 2536

Joanne Kek
(603) 3385 2520


About RAM Rating Services Berhad (RAM Ratings)

Established in 1990, RAM Ratings is a leading credit rating agency registered under the Securities Commission’s Guidelines on Credit Rating Agencies. 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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Publication Date Published Category
1H 2023 Corporate Default and Rating Transition 30-Aug-2023 Default Study View PDF