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M sian firms have stronger debt protection metrics than Asean peers | Daily Express Online

Published on: Friday, March 05, 2021 By: Bernama Text Size: Kuala Lumpur: Malaysian firms have stronger debt protection metrics than their Asean peers, said RAM Rating Services Bhd (RAM Ratings). “The average Malaysian firm also has enough cash to support 3.5 months’ operating expenses,” the credit rating agency said in a statement on Thursday. Citing its broader analysis of corporates in Asean-6 (Asean-5 + Vietnam) in its annual Corporate Default and Rating Transition Study, RAM Ratings said although half of the companies listed on Bursa Malaysia still reported weaker earnings of -0.8 per cent year-on-year in the third quarter of 2020 (Q3 2020), their debt protection metrics remained intact.

RAM Ratings: Negative bias to linger in near term

04 Mar 2021 / 09:30 H. PETALING JAYA: RAM Ratings said it expects the negative bias in rating actions to remain through the next few quarters, as 14 RAM-rated entities still carried a negative outlook as at end-December 2020. “That said, we expect the overall rated credits to withstand near-term pressure because over 80% of our portfolio is anchored by financial institutions and project finance companies with strong capitalisation, robust liquidity buffers and healthy cashflows. “In view of MCO 2.0, RAM is currently undertaking another portfolio-wide assessment which will be released soon. The preliminary results indicate limited near-term rating pressure on our portfolio,” RAM said in conjunction with the release of its latest annual Corporate Default and Rating Transition Study.

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