CIMB Investment says O&G, property and automotive facing more challengesPETALING JAYA: Strong signs are emerging for further rating downgrades in the oil and gas (O&G), property and automotive sectors as the economy further moderates amid external headwinds. Investors would face a higher risk or probability of not being able to receive the full principal and interests on their investments. CIMB Investment Bank Bhd senior managing director and global head of capital markets Nor Masliza Sulaiman told StarBiz that rating downgrades may be elevated due to the increasingly challenging Malaysian and global economic conditions. Based on data compiled from RAM Rating Services Bhd and Malaysian Rating Corp Bhd (MARC), she said that the first half of this year saw a higher number of rating downgrades at four compared with three in the previous corresponding period. Over the last 2½ months from end-June 2016, five more rating downgrades had been noted, she said, adding despite the rating downgrades, most ratings are still well above investment grade indicating low probability of default.

Source: thestar September 25, 2016 23:27 UTC