CGCC rated khAAA by Rating Agency of Cambodia
January 22, 2024Latest News
Credit Guarantee Corporation of Cambodia (CGCC) has been rated khAAA by the Rating Agency of Cambodia (RAC), a credit rating agency accredited by the Securities and Exchange Regulator of Cambodia.
This rating indicates that CGCC has an “extremely strong capacity to meet financial commitment” with the likelihood of support from the Royal Government of Cambodia.
CGCC was recently accredited as the first Bond guarantee institution in Cambodia by the Securities and Exchange Regulator of Cambodia (SERC) to help boost the bond market development in Cambodia by building more market confidence.
After obtaining the accreditation from SERC, CGCC has applied for a credit rating from RAC. As a result, CGCC was rated khAAA with stable outlook. This will enhance the rating of the corporate bonds guaranteed by CGCC and bring more confidence for bond investors, including financial institutions and insurance companies.
Sou Socheat, delegate of the Royal Government in charge as Director General of the SERC said, “CGCC is a guarantor in Cambodia bond market and its rating indicates the soundness of the company. In addition, the rating of CGCC demonstrates and commences the culture of rating to build more confidence from public and it also shows the commitment and the willingness of the company to actively participate in our bond market.”
Wong Keet Loong, Chief Executive Officer of CGCC, said, “We are honoured to receive the khAAA rating from RAC. This rating reflects the financial capability of the company to support larger SMEs who can issue bonds to source funding to expand their business. CGCC continues to play a vital role in supporting economic development and further enhancing the trust and confidence of our partner.”
Under the policy direction from the Ministry of Economy and Finance, the CGCC has developed a “Policy Framework on Bond Guarantee” and has received the highest approval from Deputy Prime Minister, Minister of Economy and Finance, on this policy framework on May 17, 2023.
On 22 August 2023, the Securities and Exchange Regulator of Cambodia (SERC) issued an accreditation letter to CGCC as a guarantor for bond issuance to support local companies raising funds and the development of the securities sector in Cambodia.
The guarantee on bond issuance service of CGCC can provide further support to encourage bond issuances by local companies, attract investors to invest in corporate bonds, increase the liquidity of Khmer Riel from the bond issuance and improve the credit rating of corporate bonds.
CGCC is the only credit guarantee corporation in Cambodia, established by the decision of former Prime Minister Hun Sen, as a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance.
The primary mission of CGCC is to provide credit guarantees to improve financial inclusion and support the growth of SMEs in Cambodia.
Credit to: Khmer Times, Published on 22 January 2024