1H 2026 Corporate Default & Rating Transition: Portfolio credit trends stable

Published on 30 Sep 2026.

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RAM Ratings has released its 1H 2026 Corporate Default and Rating Transition Study, which reflects the credit performance of its rated portfolio for the first half of 2026.

In 1H 2026, the overall credit direction of RAM’s rated portfolio had remained broadly stable with some positive tilt from count of issuers with positive outlook. The rated portfolio recorded four outlook changes from stable to positive, reflecting sound credit metrics and improved credit profiles. With one downgrade and one entity placed on rating watch with negative outlook, the two negative actions during the period were mainly driven by issuer-specific challenges, including operational disruptions and technical underperformance that materially increased liquidity stress.

In 1H 2026, the Malaysian economy recorded stronger GDP growth of 5.7% (1H 2025: 4.4%) from resilient domestic demand and stronger export performance. However, outlook remains subject to heightened geopolitical risks and increasing operating challenges.

As at end-June 2026, RAM’s rated portfolio had 91% of its active issuers rated AA3 or higher by count. Of this, a substantial 97% of issuer ratings had stable outlooks. Gross issuance in 1H 2026 stood higher at RM95 bil, up from RM61 bil over the same period last year. This supports RAM’s upward revision of 2026 corporate bond issuance expectations to RM155 bil – RM165 bil (from RM130 bil – RM140 bil).

 

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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