RAM Ratings updates corporate credit rating criteria to enhance analytical transparency and ESG integration

Published on 19 Sep 2025.

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As part of its periodic review of rating criteria and methodology, RAM Ratings has refreshed its methodology for assigning corporate credit ratings and updated its framework for assessing business and financial risks.

While the core analytical foundation remains unchanged, the revised criteria incorporate how environmental, social and governance (ESG) factors are considered in our credit assessment. The two updated publications also consolidate prior guidance, including guidance on rating ringgit-denominated securities of foreign entities. Revisions were made to improve analytical clarity and consistency across rating practices. Key enhancements include refinements to RAM’s business risk-financial risk matrix and the alignment of corresponding financial benchmarks within the matrix.

Alongside these enhancements, RAM concurrently updated the criteria covering common corporate analytical adjustments, providing insights into key adjustments that promote better comparability across rated entities. 

These revisions do not affect existing ratings in RAM’s portfolio. The updated criteria supersede the following publications:

• Rating Methodology for Corporate Credit Ratings, April 2006
• Guide to Rating Ringgit-Denominated Debt Securities Issued by Foreign Entities, June 2008
• Rating Methodology: Business Risk-Financial Risk Matrix for Corporate Ratings, August 2011
• Guide to RAM’s Analytical Adjustments to Financial Statements for Corporates, November 2022 

The updated publications can be found on our website here. 
 

Analytical contacts
Karin Koh, CFA
(603) 2708 8237
karin@ram.com.my

Siew Suet Ming
(603) 2708 8308
suetming@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
 

The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

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

Published by RAM Rating Services Berhad
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