RAM Ratings, Labuan IBFC ink MoU 

Kuala Lumpur: RAM Rating Services Bhd and Labuan IBFC Inc Sdn Bhd have inked a Memorandum of Understanding (MoU) to collaborate on RAM Ratings’ Labuan Entity Corporate Assessment (Leca) service.

Under the MoU, RAM Ratings will work with Labuan IBFC Inc – the market development agency of the midshore jurisdiction Labuan International Business and Financial Centre (Labuan IBFC) – to develop, promote and facilitate the adoption of Leca. 

RAM Ratings Chief Executive Officer Chris Lee Wai Kit said Leca ratings provide clarity, transparency and insights to facilitate confident decision-making between Labuan companies and their counterparts.

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“Through this MoU, RAM hopes to contribute to the long-term resilience and growth of Labuan IBFC,” he said in a statement Thursday. 

RAM Ratings said Leca was a new rating service for companies based in Labuan IBFC, where it evaluates the performance and financial standing of Labuan entities.

A customised service, Leca was formulated in response to Labuan entities looking to encapsulate the global wholesale nature of their business dealings in Labuan IBFC, it added.

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To ensure reliability and consistency, the rating service also applies RAM Ratings’ established frameworks for credit and performance evaluation. 

Labuan IBFC Inc chief executive officer Farah Jaafar-Crossby said Leca’s transparency will assist in enhancing the agency’s 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,” she added.