RAM Ratings introduces master criteria for Group Support and Government-Linked Entities

Published on 29 Oct 2024.

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As part of RAM Ratings’ periodic review and enhancement of rating criteria and methodology, the rating agency has introduced two new master criteria for assessing intra-group support, consolidating the methodology across various issuer segments (Assessing Group Structure Rating Links) and the rating of government-linked entities (GLEs) (Rating Approach for Government-Linked Entities) respectively.

The new criteria combines previously-separate parent-subsidiary/group support and GLE-criteria for corporate and financial institutions into a single master criteria and extends the same to include insurance/takaful companies. The new master criteria also contains several key changes and further refines our analytical approach for assessing intra-group support, including the support assessment for government-supported issuers. The revisions intend to streamline and achieve greater comparability and consistency of rating outcomes for issuers across sectors. 

Our preliminary assessment indicates that the majority of RAM’s portfolio will be unaffected. The list of rated entities whose ratings may be affected by the new master criteria is listed below. Each has been placed on review, pending a final assessment of the group support based on the new master criteria. We expect to conclude and announce the results of this review over the next three months.

The new master criteria supersede these previous publications:

• Rating Methodology for Parent-Subsidiary Rating Links, August 2011
• Group Rating Methodology for Banks, June 2015
• Rating Methodology for Rating Government-Linked Entities, August 2011
• Rating Government-Linked Financial Institutions, June 2015

For further details, please refer to the master criteria here. 

 

Analytical contacts
Siew Suet Ming
(603) 3385 2585
suetming@ram.com.my

Karin Koh, CFA
(603) 3385 2508
karin@ram.com.my

Chan Yin Huei
(603) 3385 2498
yinhuei@ram.com.my

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

 

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Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

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