Posted Date : 29 Apr 2013
Malaysian Rating Corporation Berhad (MARC) held its annual general meeting (AGM) today. The shareholders at the AGM approved the accounts for the financial year ended December 31, 2012. Chairman Mohammad Abdullah told shareholders that MARC posted a stable profit before tax of RM9.4 million on the back of revenue of RM18.7 million, representing a return on equity of 34.8%. MARC’s financial performance benefited from the implementation of mega infrastructure projects as well as corporate refinancing activities which have helped to sustain corporate borrowing and capital market activities in 2012.
At the AGM, the shareholders also approved a final dividend payment of 9 sen per share to shareholders, bringing the total gross dividend for the year to 14 sen per share. The shareholders were also informed that the board had also declared a special dividend of 10 sen per share on account of MARC’s strong cash reserve position as at first quarter 2013.
Mohammad Abdullah said that during the year, MARC continued to build on its strong track record in rating the domestic corporate bonds and sukuk market. “We are very encouraged by the market’s increased awareness about credit risk and appreciation of the credit rating agency’s role as an independent provider of credit risk assessments. As such, our vision of becoming the ‘provider of trusted insights on risk’” is highly relevant to market needs,” he said.
Mohammad Abdullah also said that future prospects for the domestic bond market remain positive, with infrastructure projects and public-private partnerships (PPP) helping to sustain bond issuance in 2013. The Malaysian economy is expected to continue to grow at the trend rate of growth, supported by strong domestic demand and brighter prospects in the global economy for 2013. An important pillar of economic growth, gross corporate bond issuance based on MARC’s forecast is expected to reach RM75-90 billion in 2013.
MARC’s Chief Executive Officer (CEO), Mohd Razlan Mohamed, said in his review of business and operations that MARC completed 22 new issue credit ratings in 2012 with a total rated value of RM28.51 billion, comprising 16 corporate debt ratings (total rated value of RM22.95 billion), three project finance ratings (total rated value of RM4.46 billion) and three structured finance ratings (total rated value of RM1.1 billion).
He also stated that MARC’s rating universe expanded in 2012 reflecting strong credit demand, mostly for infrastructure finance and refinancing of corporate debt. Of the 22 completed new issue credit ratings, 14 issues were Islamic instruments with a combined RM25.31 billion facility size, while the remaining eight were conventional instruments totalling RM3.20 billion in facility size.
Among the notable new sukuk issuances rated by MARC in 2012 are Celcom Transmission (M) Sdn Bhd’s RM5.0 billion Sukuk Programme, UEM Land Holdings’ RM2.0 billion Islamic CP/MTN Programme, Kimanis Power Sdn Bhd’s RM1.16 billion Sukuk Programme and Westar Capital’s RM900 million Sukuk Mudharabah Programme. In addition, ratings were also assigned to new debt issues by existing clients such as Putrajaya Holdings Sdn Bhd’s RM3.0 billion Sukuk Musharakah Programme and WCT Berhad’s RM1.0 billion MTN Programme. The momentum of new issues was sustained in 2013, in which RM7.1 billion of new sukuk/bonds issued to the market in the first quarter this year was rated by MARC.
MARC announced that Mohammad Abdullah retired from the board at the AGM held today, after serving 17 years as its Chairman. As the founding Chairman, Mohammad has played an instrumental role in the growth and success of MARC. Mohammad said at the AGM that he would cherish all the relationships forged during his tenure as Chairman of MARC and wished MARC every success for the future.
MARC also announced that the Board of Directors at the board meeting preceding the AGM had appointed Datuk Azizan Haji Abdul Rahman to succeed Mohammad Abdullah as Chairman of MARC effective from today. Datuk Azizan joined MARC’s Board of Directors in December 2012. He brings more than 30 years of experience as a central banker to the role. Datuk Azizan was also the former Director General of Labuan Financial Services Authority, where he served for more than six years until his retirement in September 2011.
CEO Mohd Razlan said that the senior management and staff look forward to Datuk Azizan’s leadership with respect to building on MARC’s strengths in the years ahead.
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