RAM reaffirms Danajamin's ratings
RAM Ratings has reaffirmed Danajamin Nasional Bhd's AAA/stable/P1 ratings.
In a statement today, RAM said Danajamin benefits from a "very high" likelihood of extraordinary support from the Government of Malaysia.
This is premised on the company's strategic mandate to stimulate the domestic bond market and facilitate its access to viable corporations.
It said the ratings also reflect Danajamin's conservative and highly liquid investments, as well as healthy capitalisation levels, which are further supported by a RM1 billion callable capital.
As of end-August 2013, Danajamin's portfolio (by approved insured value) stood at RM5.93 billion, a 12 per cent net growth in value year-on-year.
"Although there have been no claims to date and credit monitoring has been vigilant, Danajamin can potentially be exposed to future claims given that the underlying portfolio is estimated by RAM to comprise relatively higher-risk credits," it added.
Given this, the rating firm has placed greater emphasis on Danajamin's leverage in its assessment of the latter's claims-paying ability going forward.-- Bernama