Boost becomes first digital financier in Malaysia to get investment-grade rating upgrade to AAA by RAM
By Digital News Asia July 12, 2023
- First fintech in Malaysia to receive highest possible issue rating
- Upgraded rating cements established market confidence in M’sia, SEA
Boost, the fintech arm of Axiata, recently achieved a milestone by becoming the first digital financier in Malaysia to be upgraded to the highest investment-grade issue rating of AAA by RAM Ratings. The upgrade is based on its Senior Notes’ fully cash-backed position.
In a statement announcing the milestone, Boost contends that receiving this upgrade within little over a year after the initial A1 rating in 2022, reflects an increase in confidence by the leading credit rating agency in Malaysia, and is testament to Boost’s strong performance and robust business model, specifically for its AI-based micro-financing business.
“We are thrilled to once again raise the bar for the fintech industry, and it’s an honour to receive further market validation for the quality of our financing portfolio. This upgraded rating serves as a strong endorsement to our digital financial services, which has been positively operating at scale. We remain committed to continue our strong performance on our road towards the upcoming digital bank,” said Sheyantha Abeykoon (pic), Group CEO of Boost.
Over the years, Boost has built a track record of serving the underserved at scale in its efforts to drive greater financial inclusion. Since inception, its AI-based micro-financing business has been steadily growing, with over US$644 million (RM3 billion) worth of financing disbursed across Malaysia and Indonesia.
With its proven business model, data-driven approach, and holistic fintech ecosystem, Boost has successfully taken up the mantle of addressing the financing needs of thin-file customers and the financially underserved market segment.
Through Boost, mom-and-pop shops, roadside stalls, as well as other micro, small, and medium-sized enterprises (MSMEs), can now gain access to the financing that they need through a simple and seamless 5-minute digital application journey, with fund disbursement within 48 hours upon approval.
As Boost gears up to launch its digital bank, the upgraded rating plays a pivotal role in cementing its already established market confidence in Malaysia and Southeast Asia.