Economic Research
|
21
April 2017
|
Indonesia
|
|
Economic Update
|
|
Bank Indonesia’s
(BI) board of governors held the BI 7-day (reverse) repo rate – the benchmark
policy rate – unchanged at 4.75% on 20 Apr. We believe the Central Bank could
maintain its key policy rate in 2017 on:
1. Moderate
inflationary pressure;
2. Manageable
current account deficit.
Economist:
Rizki Fajar| +6221 2970 7065
|
Friday, April 21, 2017
BI Continues To Hold Key Policy Rate In April
RAM Ratings has reaffirmed the AAA/Stable rating of CJ Capital Sdn Bhd’s (CJ Capital or the Company) RM114 million Sukuk Murabahah (2010/2020) (the Sukuk).
Published on 21 Apr 2017.
Analytical contact
Wang Wai Wah
(603) 7628 1110
waiwah@ram.com.my
RAM Ratings has
reaffirmed the AAA/Stable rating of CJ Capital Sdn Bhd’s (CJ Capital or the
Company) RM114 million Sukuk Murabahah (2010/2020) (the Sukuk). The rating
reflects the highly predictable cashflow, the strength and legality of the
transaction’s key governing documents, the low level of counterparty risk and
the tight structural features and restrictive covenants of the facility.
During the review
period, an annuity payment from CJ Capital’s counterparty – the Johor State
Government (the State) – was slightly delayed by 2 weeks, as a result of
unforeseen restructuring at State Secretary Johore (Incorporated) (JSSI) which
saw a change in the department issuing annuity payments and the implementation
of a new IT system.
RAM expects annuity
payments to be back on schedule going forward, given the completion of the
restructuring exercise as well as the track record of timely payments for the
past 7 years. Further, a 5-month gap between the scheduled dates of annuity
payments and the dates of principal and profit payments on the Sukuk provides
the Company with an adequate time buffer.
Wholly owned by
Cahaya Jauhar Sdn Bhd (CJSB), CJ Capital was set up as a funding conduit to
raise the Sukuk. CJSB, a 60:40 joint venture between UEM Land Berhad and the
State via Permodalan Darul Ta’zim Sdn Bhd, was awarded the contract for the
development and maintenance of Kota Iskandar (the Project), the State’s new
administrative centre in Iskandar Puteri. In return for the construction and
execution of variation orders for the first phase of the Project, CJSB is
entitled to receive RM15 million in annuity payments from JSSI for 10 years.
Analytical contact
Wang Wai Wah
(603) 7628 1110
waiwah@ram.com.my
Media
contact
Padthma Subbiah
(603) 7628 1162
padthma@ram.com.my
Padthma Subbiah
(603) 7628 1162
padthma@ram.com.my
Our base case for second round face-off (is also a result that is expected by consensus): Macron vs. Le Pen. Under this scenario, we expect EUR to remain in recent range of 1.0620 – 1.08, with bias to the upside. B
|
||||||||
|
||||||||
|
||||||||
|
MARC BECOMES A STRATEGIC PARTNER TO JAPAN CREDIT RATING AGENCY, LTD
On April 20, 2017,
MARC signed a Memorandum of Understanding (MOU) to enter into a strategic
partnership with Japan Credit Rating Agency, Ltd (JCR). The MOU sets out the
framework for future cooperation between the two credit rating agencies in
facilitating cross-border debt issuances by Japan and Malaysia-domiciled
issuers as well as investment in the cross-border securities offerings in their
respective debt markets.
JCR is a leading
credit rating agency in Japan with more than 60% coverage of Japanese companies
that solicit credit ratings. JCR’s global scale ratings are recognised in the
US and European Union as it is registered with the US Securities and Exchange
Commission (SEC) and certified by the European Securities and Markets Authority
(ESMA), respectively.
Both MARC and JCR
have been expanding their respective global footprints by actively building
networks with other credit rating agencies through similar strategic alliances.
MARC presently has ties with JCR's partner in India, CARE Ratings and
Pakistan-based JCR-VIS Credit Rating Co. Ltd, a company in which JCR has an
investment. MARC and CARE Ratings are also the founding members of Europe-based
and ESMA-certified rating agency, ARC Ratings S.A. MARC currently provides
technical assistance to Bahrain-based Islamic International Rating Agency
(IIRA) and Bangladesh-based domestic rating agency Emerging Credit Rating Ltd
(ECRL).
Prior to this MOU,
MARC had entered into a similar collaborative partnership with JCR Eurasia
Rating, a Turkey-based credit rating agency, in which JCR also has an
investment.
For more
information about the strategic partnership, please contact:
April
21, 2017
Singapore’s NODX grew 15.2% YoY in 1Q17, thanks to steep gains in semiconductor shipments and exports of electrical machinery & equipment, chemicals and mineral oils & products, in
Economic Research
|
21
April 2017
|
Singapore
|
|
Economic Update
|
|
Singapore’s NODX grew 15.2% YoY in
1Q17, thanks to steep gains in semiconductor shipments and exports of electrical
machinery & equipment, chemicals and mineral oils & products, in
particular to China. Going forward, we expect NODX to slow in 2H17, after a
projected strong gain in 1H17. We expect NODX to expand 3.9% in 2017,
compared to a 3.2% drop last year, underpinned by:
1. Growing semiconductor demand,
supported by the cyclical smartphone super-cycle, as well as accelerating
adoption in the automotive and IoT sectors;
2. Stronger economic growth in the US
and other developed countries, which tend to drive Singapore’s capital goods
exports;
3. Improving commodity prices, which
would support ASEAN and other emerging markets’ economic growth.
Economist: Ng Kee Chou | +603 92802179
|
Subscribe to:
Posts (Atom)