Business

Wednesday October 21, 2009

MARC in tie-up with Bangladesh credit rating agency


KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) yesterday entered into a technical collaboration agreement with Emerging Credit Rating Ltd (ECRL) of Bangladesh.

Under the agreement, MARC will assume the role of technical partner to ECRL, providing consultancy in the development of ECRL’s credit rating methodologies and training in credit analysis.

ECRL is expected to tap MARC’s rating experience and benefit from the latter’s track record of providing credit rating services in Malaysia over the last 12 years.

ECRL is currently on the final leg of obtaining approvals from Bangladesh Securities and Exchange Commission for the purpose of obtaining a domestic credit rating agency license.

From left: MARC chief executive officer Mohd Razlan Mohamed, MARC chairman Mohammad Abdullah exchanging documents with ECRL chairman Dr Jamaluddin Ahmed and ECRL managing director NKA Mobin.

At present, there are two domestic credit rating agencies in Bangladesh.

“There is vast potential for credit rating services in Bangladesh, a key driver of which has been local banking regulatory requirements such as bank loan ratings, mandatory credit ratings for initial public offering purposes and financial institution ratings under Basel II requirement,” said MARC in a statement.

MARC chief executive officer Mohd Razlan Mohamed said this development was a testimony to MARC’s progression in becoming a matured rating agency capable of providing and exporting our technical knowledge and capability to new start-ups.

ECRL managing director NKA Mobin said the collaboration would enhance ECRL’s capability to provide its credit rating services in Bangladesh upon its expected commencement of operations in early 2010.

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