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| Sunday, 6 November 2005 |
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RAM to develop Lanka's rating operations by Elmo Leonard Rating Agency Malaysia Berhard (RAM) last week demonstrated its commitment to the Sri Lankan marketplace, having tied up with Lanka Rating Agency, Colombo (Lanka Rating) in July. RAM had identified Sri Lanka as an important market to develop its international rating operations. RAM is credited as Malaysia's premier rating agency and an affiliate of the largest international rating agency, Standard and Poor's. Lanka Rating is a homegrown entity. RAM's executive deputy chairman, Datuk Rajendram told members of the SEC, and Central Bank in Colombo, to mark the Malaysia-Lanka tie that since RAM acquired full interest in Lanka Rating in July, the company had secured 14 mandates from diverse financial institutions, here. "This is just the beginning of RAM's foray into Sri Lanka - our most prominent overseas foothold," he said. It is imperative for Sri Lanka to build a strong and stable bond market to support the nation's economic growth, Rajendram said. Similar to RAM's role in Malaysia, Lanka Rating will also be pivotal in developing the foundations of a nascent bond market, here, complementing the role played by the various regulators in the Sri Lankan capital market, he said. Lanka Rating is a relatively new player in the market, but Rajendram said that it has the benefit of RAM's 15-year track record in Malaysia and its role as a bond market catalyst. RAM has a 90 percent grip on the financial institutions ratings and an enhanced position in corporate and asset securitisation ratings in the Malaysian market having rated over 960 issues worth $69 million since its inception. In Malaysia, RAM's expertise spans the full spectrum of various economic sectors, types of funding instruments and bond structures. RAM is also a leading institution in Islamic Ratings. In recognition of RAM's rating franchise and position in the Malaysian market, Standard and Poor's signed an affiliation with RAM early this year as part of its regional expansion plan in Asia, Rajendram said. S&P's affiliates in the region include CRISL of India and PEFINDO of Indonesia, Rajendram said. Similar to RAM's role in Malaysia, Lanka Rating will be pivotal in developing the foundations of a nascent bond market, complementing the role played by the various regulators in the Sri Lanka capital market, Rajendram said. In more advanced bond markets, a milestone in developing the corporate bond market is the establishment of one or two credit rating agencies and the adoption of dual ratings. Credit rating agencies are expected to affect the bond market in several ways. |
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