2025 Corporate Default & Rating Transition: Stable ratings with positive tilt

Published on 04 Mar 2026.

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RAM Ratings has published the 28^th annual edition of its Corporate Default and Rating Transition Study, which assesses the credit performance of its rated portfolio for 2025. Covering a broad range of entities and issuers, this study represents the comprehensive analysis of default and rating transition trends in the Malaysian bond and sukuk market.

In 2025, Malaysia’s corporate and sukuk market recorded robust activity with favourable funding conditions of relatively accommodative interest rates, tight credit spreads and ample system liquidity. Gross issuance reached a record RM174.4 bil (2024: RM124.2 bil), supported by favourable interest rates, investor demand and market liquidity.

Overall credit  trends  remain  stable, with rated credits showing a positive tilt in 2025. The portfolio recorded a higher number of positive actions (11), compared with two negative actions during the year. Most upgrades reflected the realization of previously assigned positive outlooks. One default was observed, arising from an accelerated guarantee payment notice although investors did not suffer any credit loss on account of the credit guarantee.

As at end-2025, RAM’s rated portfolio stood at RM930 bil in programme value, with over 80% of ratings positioned at AA₃ or higher. The proportion of issuers on stable outlook increased to 95.2%, from 91.3% a year ago. Looking ahead, RAM expects a more balanced mix of rating actions in 2026, with the number of positive and negative outlooks both standing at four at year-end.

The long-term accuracy ratio improved to 71.9% as at end-2025 (2024: 70.1%). This reflects the consistent assessment of weaker credits at the lower end of the rating scale, well-ahead of actual distress or default reinforcing RAM’s ratings as an effective warning signal for investors.

As with prior editions, the study also reviews the performance of non-financial corporates listed on Bursa Malaysia, providing a broader benchmark for assessing overall corporate credit conditions.

 

Analytical contact
Seng Jee Hong
(603) 2708 8258
jeehong@ram.com.my

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
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