Labuan IBFC has signed a Memorandum of Understanding (MoU) to collaborate on RAM Ratings’ Labuan Entity Corporate Assessment (LECATM) service.
RAM Ratings is Malaysia’s premier rating agency and this agreement will see the two organisations develop, promote and facilitate the adoption of LECATM.
LECATM is a new rating service for companies based in Labuan IBFC and evaluates the performance and financial standing of Labuan entities.
A customised service, LECATM has been formulated in response to Labuan entities looking to encapsulate the global wholesale nature of their business dealings in Labuan IBFC.
To ensure reliability and consistency, LECATM also applies RAM Ratings’ established frameworks for credit and performance evaluation.
“RAM is thrilled to collaborate with Labuan IBFC Inc through this MoU. Having helped develop Malaysia’s onshore financial markets over the last three decades, we look forward to expanding our services to the midshore jurisdiction of Labuan IBFC via LECA,” said Tan Sri Amirsham A Aziz, Chairman of RAM Ratings.
Meanwhile, Labuan IBFC Chief Executive Officer, Farah Jaafar-Crossby, said, “As the jurisdiction is fast gaining global recognition, this is a coming-of-age for Labuan IBFC and our players.
“The benefits of transparency which LECA provides will assist us in enhancing our reputation as a transparent, well-governed midshore wholesale financial intermediation centre.”
“As we are now home to almost 1,000 global licensed entities, we are keen to encourage
intra-Labuan cross business links. For example, LECA will provide an independent first point of assessment between our reinsurance and banking license holders.”