1H 2024 Corporate Default & Rating Transition: RAM’s Portfolio Stable with Firmer Economic Growth

Published on 30 Aug 2024.

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RAM Ratings has released the latest update of the Corporate Default and Rating Transition Study which indicates the credit performance of RAM’s rated portfolio in 1H 2024.

Malaysia’s GDP grew by 5.1% in 1H 2024 due to a rebound in exports and strong domestic demand. This aligns with RAM’s GDP forecast of 4.5% - 5.5% in 2024. The total corporate bond issuance for 1H 2024 stands at RM52.1 bil (1H 2023: RM52.4 bil) but remains on track to meet the RM110 bil – RM120 bil issuance for the full year, supported by favourable yields and liquidity conditions. 

In the last six months, RAM rated bonds and sukuk programmes totalling RM35.3 bil issued by 17 issuers. In terms of rating actions in 1H 2024, positive actions (3) trumped negative actions (1), in line with sanguine economic conditions. The credit profile of RAM’s rated portfolio continues to reign strong as 80% are rated at least AA3; no defaults were observed, sustaining the long-term average 1-year Accuracy Ratio at 70.1%. 

 

Analytical contacts
Nigel Asirraj
(603) 3385 2537
nigel@ram.com.my

Joanne Kek
(603) 3385 2520
joanne@ram.com.my

Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my

 

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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