MARC plans new ratings for Muqaradah certs

MALAYSIA Rating Corp Bhd (MARC) will introduce investment quality ratings for Muqaradah certificates. 

The rating of Muqaradah certificates represented the probability of realising expected returns, rather than the ability to meet scheduled payments as there was no predetermined profit to be paid at agreed intervals, MARC president and executive director Zaiton Mohd Hassan said at the Conference on Future Trends in Islamic Equity and Bond Market in Kuala Lumpur on Wednesday. 

The Muqaradah certificate is an investment instrument arising from of a valid mudharaba contract that evidences the rights and ownership of the Rabb al-mal (owner of capital) over the capital invested in a project. 

It is an Islamic investment instrument from which no interest is earned but whose market value varies with the anticipated profits from a project in which an investment is made.  

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