Malaysian Rating Corporation Berhad (MARC) held its 22nd Annual General Meeting (AGM) at The Majestic Hotel Kuala Lumpur on June 28, 2018.
“MARC recorded a noteworthy performance on the back of improved corporate bond issuances in 2017,” said MARC Chairman Datuk Azizan Haji Abd Rahman in his review of the company’s results for the financial year ending 31 December 2017. The company posted a total revenue of RM17.0 million and a consolidated pre-tax profit of RM4.3 million in 2017.
MARC rated 17 new bonds and sukuk programmes worth RM30.7 billion as opposed to eight ratings in the previous year amounting to RM13.1 billion – an increase of 134.4%. MARC continued to play a significant role in the project finance segment, undertaking major solar power project financings in 2017. As at December 31, 2017, MARC has completed 789 ratings since its inception, amounting to RM525.7 billion (USD132.2 billion) in issuance value. MARC continues to maintain a significant presence in the domestic debt capital markets with ratings on active bonds and sukuk issuances amounting to RM49.5 billion.
Businesses have increasingly emphasised on socioeconomic development, environmental sustainability and governance in their strategy and business models to make positive contributions to society. In this regard, MARC will continue to play an active role in supporting the transitioning of the economy to a more sustainable development path by providing issue credit ratings on green projects. This is conveyed in the theme for MARC’s annual report for 2017, Mainstreaming Sustainable Finance. In line with the increasing emphasis on Environmental, Social and Governance (ESG) reporting, MARC launched its new analytical offering, Impact Bond Assessments, to facilitate investors in evaluating the sustainability credentials of green, social and sustainability bonds as well as sukuk. This will assist to bring sustainable finance into the mainstream.
MARC was once again recognised by Global Islamic Finance Awards (GIFA) for its commitment to keep pace with market innovation in Islamic finance and provide robust credit analysis. MARC was named Best Islamic Rating Agency for the third time and the second consecutive year on September 6, 2017.
“With a more challenging operating environment in 2018, MARC will strive to actively manage costs and maintain a strong balance sheet,” said Datuk Azizan in his closing remarks.
The company’s shareholders adopted the financial statements and approved a final dividend of 12.5 sen per share for the financial year ended December 31, 2017.