Credit Rating
Name: Nur Asila Abdul Latif
ID : 2010577821
Group : MC21S5A
Summary of MARC and RAM (Credit rating agencies)
To know what is RAM and MARC is doing in the financial sector in Malaysia, we need to know what is the credit rating first. So, credit ratings are forward-looking opinions about credit risk. A credit rating is an opinion of the general creditworthiness of countries, companies and individuals. Lower credit ratings result in higher borrowing costs because the borrower is deemed to carry a higher risk of default. So, what does the rating agency do? They will issue money dominated bonds or commercial papers. They also do the rating reports for online purchase. As in the Malaysia, there are two major companies that does this kind of activity. Which is Malaysian Rating Corporation Berhad and also Rating Agency Malaysia which now known as RAM Holdings Berhad. To begin with, let’s us know about MARC which provides full-service rating agency that provides ratings or issues of commercial papers, bonds, long term and short term debts and preferred shares, as well as asset-backed securities. This company also offers industry analyses, rating reports and rating indices for issuers and investors locally and globally. Not only that MARC advises the issuers or big players in business, but MARC also provides the advise on Syariah matters regarding financial matter because they have a Syariah Advising Panel. This will allow companies that exercise under Syariah laws to consult and take advises from MARC. Not only that, MARC provides the service of issuing Ringgit denominated bonds or commercial papers. They also make ratings reports for the online purchases. MARC must complete all ratings and they will continue on making continuous surveillance, which they will then review at least once a year. In this way, the companies that are under MARC’s service will be taken care of. For the rating process, the company need to obtain rating madate which they need come
ID : 2010577821
Group : MC21S5A
Summary of MARC and RAM (Credit rating agencies)
To know what is RAM and MARC is doing in the financial sector in Malaysia, we need to know what is the credit rating first. So, credit ratings are forward-looking opinions about credit risk. A credit rating is an opinion of the general creditworthiness of countries, companies and individuals. Lower credit ratings result in higher borrowing costs because the borrower is deemed to carry a higher risk of default. So, what does the rating agency do? They will issue money dominated bonds or commercial papers. They also do the rating reports for online purchase. As in the Malaysia, there are two major companies that does this kind of activity. Which is Malaysian Rating Corporation Berhad and also Rating Agency Malaysia which now known as RAM Holdings Berhad. To begin with, let’s us know about MARC which provides full-service rating agency that provides ratings or issues of commercial papers, bonds, long term and short term debts and preferred shares, as well as asset-backed securities. This company also offers industry analyses, rating reports and rating indices for issuers and investors locally and globally. Not only that MARC advises the issuers or big players in business, but MARC also provides the advise on Syariah matters regarding financial matter because they have a Syariah Advising Panel. This will allow companies that exercise under Syariah laws to consult and take advises from MARC. Not only that, MARC provides the service of issuing Ringgit denominated bonds or commercial papers. They also make ratings reports for the online purchases. MARC must complete all ratings and they will continue on making continuous surveillance, which they will then review at least once a year. In this way, the companies that are under MARC’s service will be taken care of. For the rating process, the company need to obtain rating madate which they need come