MARKET IMPLIED RATING: A FIRST FOR THE MALAYSIAN BOND MARKET (By BPA Malaysia)

KUALA LUMPUR, May 17, 2012 – Bond Pricing Agency Malaysia has introduced its latest product; the Market Implied Rating (MIR). MIR is a market-perceived credit signal, implied via market statistics and enhanced with financial mathematics. MIR is distinct from ratings issued by credit rating agencies, as the ultimate determinant of MIR is based on observable market data.

MIR benefits users from both credit and market sectors; they include dealers, brokers, regulators, rating agencies, risk and fund managers, analysts, researchers as well as corporations participating in Malaysian debt capital market. Among the benefits of MIR to users are MIR provides timely and up-to-date credit indicator by offering a short-term, snapshot view. This is based on dynamic, objective and unbiased perspective and the degrees of credit migrations as determined by market trades and perception.

“For the first time ever, the availability of MIR for the Malaysian bond and sukuk market will enable investors to have near real-time credit signals, which is directly derived from market trading activities. MIR is a globally recognized indicator and brings the level of information in the local market closer to international standards. This latest product from BPAM demonstrates our continued commitment to providing leading edge solutions for the Ringgit fixed income market”, said Meor Amri Meor Ayob, BPAM’s Chief Executive Officer.

For more information, please refer to www.bpam.com.my -> Commentary & Research ->BPAM Pricing Research for Market Implied Rating (MIR)FAQ