RAM Ratings, Japan’s R&I ink deal, eye on Islamic finance

KUALA LUMPUR: RAM Rating Services Bhd and Japan’s largest credit rating agency Rating and Investment Information, Inc (R&I) have signed an agreement to share their market knowledge while they focus on Islamic finance.

RAM Ratings said on Thursday the agreement was signed by its group CEO Datuk Seri Dr K. Govindan and R&I’s president and representative director Nobuyuki Ito.

"With this, we hope to facilitate and share market knowledge, as well as to establish areas to further enhance rating capabilities of both rating agencies.

“Another primary focus of the collaboration is also to support the development and understanding of Islamic finance, in support of Malaysia's aim to expand her appeal to be the global Islamic finance hub,” said Govindan.

Ito said beyond Islamic finance, there could be other opportunities where RAM and R&I could work together on particularly as capital mobility gets more international.

RAM Ratings said Japan has long been an important trade partner for Malaysia, pointing out Japanese corporates such as AEON Credit Service (M) Sdn Bhd, Toyota Capital Malaysia Sdn Bhd and ORIX Leasing Malaysia Bhd were among the initial entities that entered the Malaysian capital markets in 2007/2008.

Recently, Bank of Tokyo-Mitsubishi UFJ’s BTMU Malaysia Bhd  became the first Japanese bank to enter the Sukuk market with a US$500mil Sukuk programme.

RAM Ratings CEO Foo Su Yi said as a rating agency with substantial experience in Sukuk ratings, it was happy to contribute towards the development of Islamic Finance and the Japanese capital market - together with R&I - to meet the growing demand and interest in Islamic Finance markets.