Skip to content
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
    • MARCares
    • Events
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
    • MARCares
    • Events
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
  • MARC Online
  • Subscribe
  • Group

    Group

    The MARC Group of Companies comprises MARC Ratings, MARC Solutions, MARC Data and MARC Learning.

    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning

    MARC Ratings

    • Rating Guide
    • Rating Process
    • Rating Symbols & Definitions
    • Rating Methodologies
    • Regulatory
    • Lead Managers

    MARC Solutions

    MARC Data

    MARC Learning

    • Careers
    • Careers
  • Services

    Services

    MARC's subsidiaries each provide distinct product offerings and services.

    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Analytics Consulting Services
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights

    Insights

    Find the vital information you need and stay up to date with the latest news from MARC.

    • Rating Announcements
    • Research & Analysis
    • Views
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Latest@MARC
    • MARC in the Media
    • Latest@MARC
  • Events & CSR

    Events & CSR

    MARC organises a diverse range of events throughout the year to engage with all stakeholders.

    • MARCares
    • Events
    • MARCares
    • Events
  • Contact Us

    Contact Us

    Let's get the conversation started - Get in touch with us!

    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
MARC Online
Subscribe
Menu
  • Group
  • Services
  • Insights
  • Events & CSR
  • Contact Us
  • Group
  • Services
  • Insights
  • Events & CSR
  • Contact Us
Credit Ratings & Related Assessments
Economic & Fixed-Income Analysis
Sustainability Related
Analytics Consulting Services
Data Analytics
Credit Reporting
Learning Programme

Credit Ratings & Related Assessments

Economic & Fixed-Income Analysis

Sustainability Related

Debt Advisory

Analytics Consulting Services

Data Analytics

Credit Reporting

Learning Programme

  • Insights
  • Rating Announcements
Ratings

MARC Ratings affirms AAA rating on Credit Guarantee Corporation

28 December 2023

Access the full report here.

View Reports

Contacts

Akmal Sadiq
+603-2717 2939/ akmal@marc.com.my

Fahmi Hawari
+603-2717 2946/ fahmi@marc.com.my

Mohd Izazee Ismail
+603-2717 2947/ izazee@marc.com.my

MARC Ratings has affirmed its financial institution rating of AAA on Credit Guarantee Corporation Malaysia Berhad (CGC) with a stable outlook.

The affirmed rating considers the government’s 78.6% ownership of CGC through Bank Negara Malaysia as well as CGC’s key public policy role focused on facilitating access to financing for micro, small and medium-sized enterprises (MSMEs). MARC Ratings views the propensity for government support as very high. The rating also considers CGC’s strong capitalisation level.

CGC provides credit guarantees on loans and financing extended to MSMEs through participating financial institutions (PFIs). After strong growth between 2019 and 2022 where CGC’s net loans guaranteed increased from RM9.4 billion to RM15.1 billion — bolstered by the various government-initiated financing schemes introduced during the pandemic period — growth has slowed in 2023 as the schemes gradually end. Nevertheless, the rating agency opines that the continued strong support from the government in developing MSMEs, which is exemplified by a supportive Budget 2024 allocation of RM44 billion for the sector, will bode well for CGC.

The Portfolio Guarantee (PG) scheme remains CGC’s key product, accounting for 92.7% of its guaranteed loans in 1H2023. Under the PG scheme, CGC provides guarantees on loans extended by PFIs at various coverage levels (average of 70%); part of the credit risk is transferred to the PFIs.

CGC’s gross non-performing loans/financing ratio increased moderately to 4.8% as at end-June 2023, from 4.1% as at end-2022, following the expiry of loan relief programmes and ongoing corporate stress, particularly among MSMEs. While CGC is exposed to high-risk MSME lending given its mandate to support the sector, this risk is mitigated by CGC’s strong capital level which stood at 39.7% as at end-1H2023 (on a comparable Basel II basis). In this regard, the risk-sharing with PFIs under the PG scheme, which makes up the bulk of CGC’s guarantee portfolio, is also viewed positively.

In 1H2023, total income rose by 59.0% y-o-y to RM260.4 million, mainly due to higher investment income of RM122.9 million during the period. CGC’s net profit improved to RM54.1 million in 1H2023 (1H2022: -RM62.6 million) on higher income and lower provision of RM133.4 million during the period (1H2022: RM150.7 million). Meanwhile, its liquidity profile remained stable, supported by strong cash balances and term deposits. As of end-1H2023, debt and sukuk securities constituted around 61.4% of CGC’s total investments, down slightly from 66.4% in 2022. Within the portfolio, bonds and sukuk rated AA and above continue to form the bulk of the investments at around 86.4%.

Related Report

Read More

Related Issues

Read More

Related News

Read More

You May Also Like To Read

See All
Ratings

MARC Ratings assigns final ratings of AAA/AAAIS to Cagamas’ RM80.0 billion MTN/IMTN Programmes

23 May 2025

Ratings

MARC Ratings withdraws rating on UiTM Solar Power’s Sukuk

21 May 2025

Ratings

MARC Ratings affirms ratings on Bank Pembangunan following acquisition of two development financial institutions

20 May 2025

See All

Let’s get started.

Subscribe to our mailing list today.

Subscribe Now
Group
  • About MARC
  • Leadership
  • Investor Relations
  • Notable Issuances
  • Careers
Regulatory
  • Rating Reviews Summary
  • List of Defaults
  • List of Credit Ratings Published
  • List of Entities on Rating Watch
Services
  • Credit Ratings & Related Assessments
  • Sustainability-Related Assessments
  • Economic & Fixed-Income Analysis
  • Sustainability-Related Advisory
  • Subscriptions
  • Analytics Consulting Services
  • Data Analytics
  • Credit Reporting
  • Learning & Customised Programmes
Subsidiaries
  • MARC Ratings
  • MARC Learning
  • MARC Data
  • MARC Solutions
Insights
  • Rating Announcements
  • Research & Analysis
  • Views
  • Latest@MARC
  • MARC in the Media
Events
  • Corporate Events
  • Corporate Social Responsibility (CSR)
  • Advertise with MARC
Contact Us
  • Contact Us
  • Service Level Feedback Form
  • Publication Feedback Form
  • Whistleblowing
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
    • MARCares
    • Events
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
Terms & Conditions
Privacy Notice
Copyright Notice
Whistleblowing
PDPA Notice
© 2023 Malaysian Rating Corporation Berhad. All rights reserved.
Facebook Twitter Linkedin

Join MARC Mailing List

I would like to subscribe this mailing list. Please tick whichever is applicable
I agree/ do not agree (please tick whichever is applicable) to receive future events, conferences or marketing materials from MARC. *
Privacy Notice *
Declaration *