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.
“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.
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.
