Malaysian Rating Corporation Berhad (MARC) recently concluded its 27th Annual General Meeting (AGM), themed "Redefining Opportunities, Pushing Boundaries." The meeting took place virtually on 31 May 2023. During the AGM, shareholders approved all agenda items and resolutions proposed by the Board of Directors.
In his review of the company's financial results for the year ended 31 December 2022, Datuk Seri Dr Nik Thani N. Hassan Thani, the Chairman of MARC, mentioned that the total top-line revenue for the MARC Group in 2022 was RM23.23 million, slightly lower than the RM23.69 million in 2021. Profit before tax for 2022 was RM8.68 million compared to RM9.69 million in 2021. These figures reflect the trust placed in MARC Ratings’ rating activities by the financial community, demonstrating their confidence in MARC Ratings’ accuracy and stability that is comparable to international rating agencies.
In 2022, MARC maintained a robust collection of corporate bond issuers, granting 27 new ratings with a program size totalling RM29.1 billion. Additionally, they reaffirmed 115 existing ratings. Over the long term (1998–2022), the ratings accuracy ratio came in at 73.6%, marginally higher than the 71.0% recorded in the 1998–2021 period. In 2022 alone, ratings accuracy ratio stood at 98.9%. Furthermore, ratings stability experienced an increase, reaching 93.3% in 2022 compared to 91.6% in 2021.
In 2022, The Asset honoured MARC Ratings with two prestigious titles. The company was awarded for its role as an external reviewer of Small Medium Enterprise Development Bank Malaysia Berhad’s (SME Bank) RM500 million ASEAN Sustainability Wakala Bi Al-Istithmar Sukuk, which won Best ASEAN Sustainability Sukuk (Malaysia), and it was also recognised for its Sustainability Sukuk Assessment for Agroto Business (M)’s RM200 million ASEAN Sustainability SRI Murabaha Sukuk, which won the Most Innovative Deal (Sustainable Finance). Additionally, MARC Ratings was named the Best Islamic Rating Agency of the Year 2022 at the 12th Global Islamic Finance Awards (GIFA).
“MARC remains committed to continue delivering value to its clients while maintaining a focus on excellence and innovation. Over the past year, we have invested in our people, processes, and technology to enhance our operations and improve the quality of our products and services. We are faced with a growing competitive environment and challenges. Therefore, we have embarked on several growth strategies including tapping into the potential to grow into new markets as well as starting new businesses in credit analytics and credit reporting. We also intend to widen our product offerings in ESG”, he added.
In his closing remarks, Datuk Seri Dr Nik said, “We intend to fund our expansion from internal funds and expect that there will be a spike in costs from this year which may impede dividend distribution in the coming years, however in the longer term this will create a diversified revenue stream and sustainable future for all our stakeholders”.
