Myanmar moves towards first-ever credit ratings Myanmar moves towards first-ever credit ratings

Myanmar moves towards first-ever credit ratings

Myanmar moves towards first-ever credit ratings

Citi and Standard Chartered Bank have been appointed as Myanmar’s sovereign-credit-ratings advisers.
They will act as a bridge between the government and three international ratings agencies – Standard & Poor’s, Fitch Ratings and Moody’s.

The government announced that the advisers would support Myanmar’s efforts to enhance data collection and improve investor outreach. Under military rule for nearly six decades, the country has never been rated by any agency, which blocks its ability to reach out to international lenders.

A good credit rating would improve the country’s borrowing costs and enhance its capital-raising strategy and dialogue with the international investment community.

Increased transparency will also increase investors’ confidence in the safety of their investments in Myanmar. This is expected to attract more investors and promote foreign direct investment and trade flows.

This will ultimately strengthen Myanmar’s brand and contribute to the broader economic development goals of the country, its government hopes.

It remains unclear when the first credit ratings will be achieved. All depends on the government’s goals and the speed at which quality and relevant data and information can be collected and analysed by the ratings agencies. “We have broad experience in helping governments establish a credit profile, access global capital markets and seek foreign investment,” Darren Buckley, Citi’s officer for Thailand, Myanmar, Cambodia and Laos, said yesterday.

“Over the past decade, Citi has served as ratings adviser to 10 governments in Asia, Europe, the Middle East and Latin America, including five with similar credit profiles to that of Myanmar.”

The bank operated a branch in Myanmar from 1919-42.

StanChart’s presence dates back more than 150 years. It opened a representative office in 2013.

“A key feature of our role is to assist the government of the Union of Myanmar through capacity building and training,” said Lyn Kok, president and chief executive officer for Thailand and Greater Mekong at StanChart.

Source: AsiaOne Business

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