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MALAYSIAN credit ratings agency RAM nearly halved its forecast for corporate bond issuance in the country in 2009 in a sign of further deterioration in the debt market amid the global credit crunch.

RAM’s chief operating officer Liza Mohd Noor said the agency expects 2009 corporate bond issuance of RM20 billion to RM25 billion (US$5.5 billion-US$6.9 billion), down from RM40 billion-RM45 billion forecast early this year.

“It’s no longer a shame to revise down nowadays,” she told reporters on the sidelines of a conference, adding that the forecast was based on expectations of gross domestic product growth of 3.6 per cent in 2009.

She also said corporate bond issuance in 2008 would total close to RM27 billion, where it stood at end-October.
 
The agency had earlier forecast RM28 billion to RM30 billion worth of corporate debt sales this year.

“At this rate, with just another few more weeks to close the year, issuance will probably be RM27 billion, RM28 billion to the maximum from the look of things,” she said.

“Although there seems to be a lot of interest, but (there is) no actual issuance

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