KUALA LUMPUR: RAM Rating Services Bhd has lowered its projected gross private debt securities (PDS) issuance for 2015 to between RM75 billion and RM85 billion, from the previous range of between RM85 billion and RM95 billion, citing “mounting uncertainties that have been weighing on overall market sentiment”.
“We believe that these downside risks have made and will continue to render market participants more circumspect about both the timing of potential debt issues and when investing,” the rating agency said in a statement yesterday.
As at end-May 2015, the outstanding value of PDS totalled RM336 billion, compared with RM333.4 billion as at end-April 2015. Gross issuance amounted to RM9.5 billion in May, while issuance reached RM32.1 billion for the first five months of this year, a 14.2% decline from the corresponding period of last year.
This article first appeared in The Edge Financial Daily, on June 17, 2015.