Posted Date: December 7, 2021

MARC has published for comment exposure drafts which outline the rating agency's analytical frameworks on Commercial Real Estate (CRE)-Backed Securitisation and Highway Investment Trust. The main highlights of the methodologies are as follows:

CRE-Backed Securitisation
  • Assessment of key factors the rating agency uses to determine loan-to-value ratios
  • Deriving value of the collateral asset under the rating agency's income capitalisation approach
  • Establishing funding limit in line with the threshold of the rating bands
Highway Investment Trust
  • Assessment of key factors that underpin toll road performance
  • Financial analysis and debt structure
  • Trust structure and governance

MARC welcomes comments on the draft methodologies and will consider all comments received in writing by December 21, 2021. Comments on the exposure draft should be sent toratingmethodology@marc.com.my. All responses will be regarded as on the public record unless confidentiality is requested by the commentator. MARC will finalise the rating methodologies following a review of comments received during the consultation period. Once finalised, the methodologies will apply to both new and existing ratings.

The aforementioned exposure drafts can be accessed on MARC's website at Commercial Real Estate-Backed Securitisation (Exposure Draft) and Highway Investment Trust (Exposure Draft).

Lim Wooi Loon, +603-2717 2943/wooiloon@marc.com.my;
Rajan Paramesran, +603-2717 2933/rajan@marc.com.my.