KUALA LUMPUR, April 16 — 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 billion-RM95 billion, from the initial RM100 billion-RM110 billion,” it said in a statement released here today.
On the other hand, the credit rating agency expected the government 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 billion-RM145 billion this year, from our previous forecast of RM115 billion-RM125 billion,” it added. — Bernama
