Malaysia’s corporate credit profile remained broadly stable in the first half of 2026, with a slight positive tilt as several issuers recorded improved outlooks, according to RAM Ratings.
In its 1H 2026 Corporate Default and Rating Transition Study, the rating agency said its rated portfolio recorded four outlook revisions from stable to positive during the period, supported by sound credit metrics and stronger credit profiles.
On the negative side, RAM recorded one rating downgrade and one entity placed on rating watch with a negative outlook. The agency said both actions were primarily driven by issuer-specific challenges, including operational disruptions and technical underperformance that materially increased liquidity pressure.
Despite these isolated cases, the overall quality of RAM’s rated portfolio remained strong.
As at end-June 2026, 91% of active issuers were rated AA3 or higher, while 97% of issuer ratings carried stable outlooks.
RAM said the backdrop was supported by Malaysia’s stronger economic performance, with gross domestic product expanding 5.7% in the first half of 2026, compared with 4.4% in the corresponding period last year.
The improvement was driven by resilient domestic demand and stronger exports, although RAM cautioned that the outlook remains exposed to heightened geopolitical risks and increasingly challenging operating conditions.
Corporate bond issuance also strengthened markedly during the period.
Gross issuance reached RM95 billion in 1H26, up from RM61 billion a year earlier.
The stronger pace has prompted RAM to revise its full-year 2026 corporate bond issuance forecast upward to RM155 billion-RM165 billion, from its previous estimate of RM130 billion-RM140 billion.
The revised projection suggests corporate funding activity is expected to remain robust in the second half, supported by continued demand for capital despite a more uncertain external operating environment.
