MARC Ratings raises red flag over Zetrix AI's governance
KUALA LUMPUR: MARC Ratings has revised the MARCWatch status on Zetrix AI Bhd to “Negative” from “Developing”, citing growing concerns over the company's transparency and governance.
KUALA LUMPUR: MARC Ratings has lowered its rating outlook on Zetrix AI Bhd from Developing to Negative, signaling growing concerns over the company's transparency and governance practices. The rating agency disclosed it is still missing critical data to fully evaluate Zetrix AI's creditworthiness, despite numerous inquiries. This information gap includes specifics about the significant rise in borrowings, as well as the utilization of substantial development spending, according to MARC Ratings.
The company's troubles were further exacerbated by the departure of its external auditor, ongoing payment delays, and the suspension of certain operations. Previously rated AA-IS for its Islamic Medium-Term Notes Programme valued at RM2 billion, Zetrix AI's outlook was downgraded to MARCWatch Negative, reflecting a heightened risk of a future downgrade.
MARC Ratings stated that this revision indicates a higher probability of a credit rating reduction. The Negative status will remain in effect until sufficient information is provided and the raised concerns are adequately addressed. If the necessary data remains unavailable or insufficient to conduct a credible credit assessment, MARC Ratings may suspend or withdraw the rating altogether.
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