KUALA LUMPUR: Malaysian Rating Corporation Bhd (MARC) has affirmed its AAA financial institution rating on Credit Guarantee Corporation Malaysia Berhad (CGC) with a stable outlook. MARC said as a development financial institution (DFI), CGC plays a public policy role to facilitate access to financing for small and medium enterprises (SMEs) by providing credit guarantees on loans extended by financial institutions. It said the stable outlook reflects MARC’s expectations that government support for CGC will remain and that the DFI will continue to maintain its financial fundamentals. The PG scheme which is undertaken with participating financial institutions (PFI) allows CGC to share its guarantee risks with PFIs. Besides that, CGC’s guarantee scheme’s gross non-performing loans (NPL) ratio declined to 12.6 per cent as at end-June 2017 (end-2016: 13.9 per cent).

Source: New Strait Times December 21, 2017 03:22 UTC