RAM Ratings publishes master criteria for financial institutions, superseding existing methodologies

Published on 30 Jun 2026.

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As part of its periodic review of rating methodologies, RAM Ratings has published a master criteria for financial institutions, consolidating its analytical approach to assessing the creditworthiness of banks, bank holding companies, bank capital securities and systemic support.

This new criteria replaces several standalone methodology documents and provide a single reference point for assigning and monitoring issuer and instrument ratings across the relevant financial institution sectors. It supersedes the following criteria:

• Approach to Rating Financial Institutions (December 2008)
• FAQ: Methodology for Rating Bank Securities (May 2015)
• Systemic Support Assessment for Banks (June 2015)
• Rating Basel III Securities with Intra-group Loss-absorption Terms (June 2015)
• Rating Methodology for Non-operating Bank-Holding Companies (June 2015)
• Rating Bank Securities (November 2015)

While the core analytical approach remains largely unchanged, the master criteria introduces refinements that reflect regulatory and market developments since the criteria was last published, alongside improvements to clarity and readability. Some of the key updates include incorporating a broader set of metrics across asset quality, capital, funding and liquidity, as well as updates to systemic support considerations and the integration of ESG factors within the rating framework. We do not expect the criteria to affect any existing ratings in RAM’s portfolio. The criteria can be found on our website here.

 

Analytical contacts
Amy Lo 
(603) 2708 8289
amy@ram.com.my

Wong Yin Ching, CFA  
(603) 2708 8280
yinching@ram.com.my

Sophia Lee 
(603) 2708 8211
sophia@ram.com.my

Media contact
Sakinah Ariffin
(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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