RAM Ratings launches MFRS 9 solution

• Assists users in complying with the new Malaysian Financial Reporting Standards (MFRS 9)
• Serves as an invaluable third-party benchmarking tool for users’ existing systems

RAM Ratings on Jan 29 launched a new and powerful software that automatically generates expected credit loss (ECL) calculations for fixed-income instruments.

Known as RAM MFRS 9, the solution will assist users in meeting compliance of the new Malaysian Financial Reporting Standards (MFRS 9).

The RAM MFRS 9 solution also serves as an invaluable third-party benchmarking tool for users’ existing systems.

Underscored by RAM’s extensive database and research expertise, the RAM MFRS 9 solution offers estimations on the probability of default for up to a 30-year horizon, and computes 12-month or lifetime ECL at instrument level.

“The critical ECL parameters deployed in the RAM MFRS 9 software are estimated from granular long-dated default, transition and recovery data that specifically reflect the credit cycle in Malaysia. It therefore offers the most relevant solution to investors of ringgit fixed-income instruments,” explains Julie Ng, RAM Ratings’ head of Data Analytics.

“We have also developed a powerful ECL engine that provides dynamic and comprehensive scenario analyses. This will facilitate users’ quick comprehension of portfolio credit risks, without the need to conduct complex modelling or lengthy simulations.”

RAM MFRS 9 solution at https://mfrs9.ram.com.my or https://www.ram.com.my is now available for subscription.