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RAM Ratings affirms MDV’s AA3/Stable/P1 ratings
Published on 06 Jul 2026.
RAM Ratings has affirmed Malaysia Debt Ventures Berhad’s (MDV) AA3/Stable/P1 corporate credit ratings and the same ratings of its RM2 bil Conventional and Islamic Commercial Papers/Medium-Term Notes Programmes. The affirmation incorporates an uplift, reflecting our view that MDV will continue to benefit from a “very high” likelihood of government support. This is supported by its strategic policy role in financing technology and innovation-led sectors and full government ownership through the Minister of Finance (Incorporated) and the Federal Lands Commissioner, although its standalone credit profile remains constrained by weak asset quality and modest earnings generation.
Established in 2002, MDV focuses on financing to underserved technology firms, a mandate that has broadened from information and communications technology to include other national priority sectors, notably most recently energy transition. MDV is one of two implementing agencies under the National Energy Transition Facility, part of the broader National Energy Transition Roadmap, and manages up to RM200 mil of allocated grants. The government’s track record of support has included partial debt-to-equity conversions, government guarantees and funding cost subsidies for sukuk issuances – supporting our view of continued policy linkage and financial support, if required.
MDV’s financial performance improved in FY Dec 2025, with pre-tax profit rising to RM7.3 mil from RM3.4 mil a year earlier, driven by higher financing income and impairment writebacks. However, earnings remain modest and sensitive to financing impairments and fair value movements. The gross impaired financing ratio declined to 23.9% as at end-December 2025 (end-December 2024: 29.9%), partly reflecting strong double-digit financing portfolio growth. Its weak asset quality nonetheless remains a key credit constraint, given MDV’s developmental lending role, concentrated exposures and focus on higher-risk financing segments.
Financing growth is expected to be supported by technology and energy transition projects, which may increase MDV’s funding requirements over the medium term. Gearing could potentially exceed four times from 3.8 times as at end-December 2025, but should remain comfortable. Its limited liquidity buffers and reliance on wholesale funding, particularly in view of its exposure to volatile credit costs, remain moderating factors.
Analytical contacts
Joel Thum
(603) 2708 8232
joel@ram.com.my
Amy Lo
(603) 2708 8289
amy@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 2026 by RAM Rating Services Berhad
