Malaysian Rating Corporation Berhad announced its 2021 financial results with total revenue improving by 25% to RM23.69 million compared to RM18.99 million in 2022. Profit before taxes increased to RM9.69 million (2020: RM6.18 million).
According to MARC Chairman Datuk Seri Dr Nik Thani N.Hassan Thani for 2021 MARC continued to maintain a strong portfolio of corporate bond issuers, having assigned 22 new ratings with a total programme size of RM28.9 billion, with 108 rating reaffirmation. As at December 31, 2021, the firm has completed 911 ratings since its inception, amounting to RM641.8 billion in issuance value.
MARC’s bond and sukuk ratings showed overall improved rating accuracy in 2021, with the majority of the ratings remaining stable. Over the long term, the ratings accuracy ratio came in at 71.0%, marginally higher than the 70.1% reported in 2020. On the other hand, ratings stability edged lower to 91.6% in 2021 (2020: 95.7%) but remained above its historical average of 87.4% since 2000.
Among its accomplishment for the year, the raring agency was also recognised for its role as the external reviewer of SME Bank’s RM500 million ASEAN Sustainability Sukuk, which was named Best Sustainability Sukuk for 2021 and was also named Best Islamic Rating Agency at the 11th Global Islamic Finance Awards (GIFA).
Datuk Seri Dr Nik added that Malaysia experienced a modest rebound in 2021 with real GDP growth coming in at 3.1%, an indication of a gradual and bumpy economic recovery ahead given the pandemic’s long-term scarring. On the external front, the weaker prospects of the world’s major economies are also a concern, adding to a potent mix of downside risks to Malaysia’s overall trade and national output performance. Against this backdrop, MARC anticipates Malaysia’s GDP growth to pick up to 5.5% in 2022, while corporate bond issuance is expected to moderate slightly to between RM100.0 billion and RM110.0 billion.
The company’s shareholders reviewed and adopted the financial statements, and the Board of Directors declared a first and final single tier dividend of 10 sen per share respectively for the financial year ended December 31, 2021.
