KUALA LUMPUR: RAM Rating Services Bhd (RAM Ratings) said demand for financing may well ebb this year given the expected economic contraction and potential delays in projects as well as reduced capital expenditure by companies.
“We have revised our projected corporate bond issuance for 2020 to RM80 bil-RM95 bil, from the initial RM100 bil-RM110 bil,” it said in a statement today.
On the other hand, the credit rating agency expected the government’s financing requirements to increase, driven by the need to fund the country’s wider fiscal deficit arising from the government’s various stimulus packages.
“RAM anticipates MGS/GII issuance (Malaysian Government Securities/Government Investment Issues) to rise to RM135 bil-RM145 bil this year, from our previous forecast of RM115 bil-RM125 bil,” it added. – April 16, 2020, Bernama
