RAM eyes expansion

KUALA LUMPUR: RAM Holdings Bhd, which is pursuing a fresh strategy of market extension and product diversification, is expanding its regional and global franchise with particular focus on the Asean market.
RAM group CEO and executive director Datuk Seri Dr K Govindan said about 10% of its shareholders' fund will be utilised for market extension.
"In areas where reasonably developed rating agencies are already prevalent, such as Singapore, Thailand and Indonesia, our strategy is to collaborate with existing rating agencies to pursue our interest.
"In lesser developed economies like Cambodia, Laos Myanmar, the focus is going to be on developing the capital market," he told a press conference after the group's AGM here yesterday.
With its overseas expansion, RAM will continue to support fund raising as well as provide credit surveillance tool for issuers and investors in the region.
The group is also capitalising on its experience in rating sukuk to play a bigger role in the Gulf Cooperation Council (GCC) region and other regional sukuk markets. The strong growth potential for Islamic finance in GCC countries will present business opportunities for RAM.
"One of our fundamental strengths is in sukuk with nearly two thirds of the world's sukuk rated by RAM. We're looking at possible tie-ups with relevant parties to develop our business in the GCC in terms of rating," said Govindan.
On product diversification, RAM is strengthening its non-rating business by harnessing its data and analytics resources and capability in training.
RAM continued to be the top rating agency in the country, assigning credit ratings to 73% of the total rated programme value of private debt securities in 2013.
"We still hope to maintain our dominant market share, which we believe is about 60% to 70%," said RAM Rating Services Bhd CEO Foo Su Yin.
Since the launch of its regional and international scale ratings in early 2013, RAM has published ratings on 17 entities and sovereigns on these scales.
RAM projects gross corporate bond issuance to range between RM90 billion and RM95 billion in 2014, compared with about RM84 billion in 2013, supported by the projects coming on-stream under the Economic Transformation Programme, private finance initiatives and capital-augmentation plans by financial institutions.
"It (the RM95 billion target) is a little optimistic, as up to May this year, total bond issuance is about RM37.4 billion, so we think it can still be achievable by this year," Foo said.