Posted Date : 08 Aug 2014

MARC has published for comment an exposure draft which outlines the rating agency’s group rating methodology.

MARC’s group rating methodology recognises that the creditworthiness of a group member entity can be influenced by financial and business-related interdependencies among group members. This exposure draft articulates MARC’s approach to conducting analysis of an entity which is a member of a corporate group that consists of more than one legal entity which are linked by common ownership.

MARC has, over the years, incorporated in its ratings of group entities the potential for group support or rating drag arising from its exposure to weaker group members. The publication of this exposure draft is part of MARC’s initiatives to increase transparency around the rating agency’s ratings process and to ensure the consistency of methodology application.

MARC welcomes comments on any aspect of the draft methodology during the comment period and will consider all comments received in writing by September 8, 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.