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Posted Date : 04 Aug 2014

MARC has published for comment an exposure draft on the 6x6 rating matrix it employs to guide its ratings process for non-financial corporations. The Rating Outcomes Grid provides transparency on how MARC’s business and financial risk assessments of a corporate are considered in assigning corporate credit ratings.

The Rating Outcomes Grid also offers insight into how positive or negative changes occurring along the business risk dimension can affect the financial dimension (and vice versa) with the potential to moderate or amplify overall credit risk. While corporate business and financial risk assessments have always formed the basis for MARC’s corporate credit ratings, the current approach to combining these assessments is a change from the rating agency’s previous practice of assigning fixed weights to the rated entity’s business and financial risk drivers. MARC believes that this enhancement of its rating approach will support more timely rating changes and forward-looking credit opinions.

MARC welcomes comments on any aspect of the draft methodology during the comment period and will consider all comments received in writing by August 25, 2014. Comments on the exposure draft should be sent to ratingmethodology@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 methodology following a review of comments received during the consultation period. 

Contact: Milly Leong, +603-2082 2288/milly@marc.com.my.