By assessing and evaluating the credit risks of debt securities and their issuers, rating agencies help investors make informed decisions on their investment choices. In Malaysia, Malaysian Rating Corporation Berhad (MARC) provides this vital service to the domestic capital market. Group Chief Executive Officer, Datuk Jamaludin Nasir, talks about the company’s goals moving forward.
“Since our inception in 1996 to the end of 2020, we completed over 872 ratings with a total value of almost RM900 billion. Having been appointed as MARC’s GCEO in December 2019, I am pleased to have been able to bring to the table a unique set of perspectives drawn from nearly three decades in finance and investment banking, both domestically and abroad.
This is reflected in our strong performance in 2020, despite the more uncertain operating environment. For instance, new assignment ratings last year were 3 times that of 2019, while revenue went up by 15 percent.
Another milestone was us winning two awards last year. These were Global Islamic Finance Awards’ Best Islamic Rating Agency award and The Asset’s Rating Agency of the Year award. Such recognition from the industry is an endorsement of our stakeholders’ continued trust in MARC and the role we play in the debt capital markets.
Foundations of Success
Our success can be attributed to our ability to address challenges. For instance, we managed to implement business-friendly changes with the collective support of the leadership team and staff. At the same time, we are continuously improving collaborations with clients and the relevant stakeholders when negotiating or repackaging deals to improve their attractiveness. We have also sought, and successfully obtained, mandates in new and upcoming sectors.
We are also unique in the sense that each of our staff have multiple roles that expose them to the ‘big picture’ in day-to-day operations. This helps enhance the efficiency of their working relationships while allowing MARC to function as a lean organisation that is flexible, adaptable and able to respond quickly to changes.
Buoyed by our 2020 results, we have ambitious goals for 2021 and beyond. We aim to achieve a 50:50 ratio for both ratings and non-ratings revenue. We are doing so by rebranding and restructuring our various subsidiaries to provide products and services that are more dynamic and market-driven.
This includes diversifying the offerings of MARC Solutions Sdn Bhd to encompass corporate and debt restructuring advisory services and offering virtual learning options through MARC Learning Sdn Bhd. We have also formed a new subsidiary called MARC Data Sdn Bhd, which will provide credit reporting services as well as comprehensive business data and analytical tools.
Moving forward, MARC aims to leverage on our capabilities as a credit specialist to ensure the sustainability of our Group. We will continue to play a significant role in facilitating the sustainable and inclusive growth of the Malaysian debt capital markets.”
