1H 2025 Corporate Default & Rating Transition: Stable credit trends amid moderating economic expansion

Published on 19 Sep 2025.

Share Tweet Email

RAM Ratings has released its latest Corporate Default and Rating Transition Study, reflecting the credit performance of its rated portfolio for the first half of 2025.

The Malaysian economy expanded by 4.4% in 1H 2025 (1Q 2025: 4.4%; 2Q 2025: 4.4%), marking a deceleration from the robust 5.1% expansion in 2024. Despite the softer macroeconomic backdrop, credit quality across RAM’s rated universe remained resilient. Positive actions (2) outpaced negative actions (1), underscoring the portfolio’s stability. 

As at end-June 2025, RAM’s rated portfolio stood at RM1.0 tril in programme value, with 83% of ratings at AA3 or higher. No defaults were recorded during the period, maintaining the long-term average one-year Accuracy Ratio at 70.1%. 

 

Analytical contact
Joanne Kek
(603) 2708 8231
joanne@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
© Copyright 2025 by RAM Rating Services Berhad