Corporate Debt Ratings assess the likelihood of timely repayment of principal and payment of interest over the term to maturity of such debts.
Issuer Ratings provide a current opinion of an issuer’s overall financial capacity to meet its senior unsecured financial obligations and do not apply to any specific financial obligation. This assessment does not take into account any form of credit enhancement on the issuer’s obligations and the legality and enforceability of those obligations.
Issuer Rating product is in line with the shelf registration scheme introduced to the Malaysian capital market.
Structured Finance Ratings assess the likelihood of timely repayment of principal and payment of interest on debt securities issued by a corporate, usually a single purpose vehicle, against stable income-generating assets, e.g. hire purchase receivables, toll collections, rental income, etc.
Islamic Capital Market Instrument Ratings assess the likelihood of timely repayment of the instruments issued under the various Islamic financing contract(s). MARC’s assigned ratings on fixed-income Sukuk essentially reflect MARC’s opinion on the likelihood of full and timely payment of obligations under the Sukuk. The assigned rating(s) are differentiated from ratings on conventional debt offerings and other fixed-income Islamic capital market instruments. MARC adds ‘IS’ as a subscript to eight long-term rating categories from ‘AAA’ to ‘D’ and the ‘MARC-1’ to ‘MARC-D’ short-term rating scale to differentiate its Sukuk ratings. An ‘ID’ subscript is used for MARC’s other fixed-income Islamic debt securities. MARC’s Syariah Advisory Panel advises MARC on the Syariah aspects of Islamic financial instruments, reviews and endorses new or variations to Islamic rating products and rating definitions and ensures that compliance with Syariah principles are maintained.
These ratings are useful for:
- benchmarking a company against its peers
- enhancing investors' confidence
- market profiling
- reducing time for future debt ratings
- enhancing a company's standing for counterparty risk purposes
- facilitating credit evaluation for bank borrowings and bank credit lines
Islamic Financial Institution Governance Ratings assess the corporate governance of an Islamic Financial Institution (IFI). IFI governance ratings are an assessment of how the IFI promotes sound governance transparency and accountability and institutional capacity-building for improved governance.