[RAM] RAM Ratings upgrades ratings of Poseidon's Second and Third Tranche Senior MTN

RAM Ratings has upgraded the ratings of Poseidon ABS Berhad’s (Poseidon or Issuer) Second and Third Tranche Senior Medium-Term Notes (MTN) (see table). 



The rating upgrades are supported by the sustained improvement in performance of MCM’s BNPL portfolio and the securitised receivables under both the Second and Third Tranches. This is reflected in lower default and delinquent rates observed in the updated static pool data and OC levels consistently exceeding 45% (the minimum required threshold for Junior MTN coupon payments). In view of the improved receivables performance and reduced concerns over the inflationary impact of subsidy rationalisation, we have revised the base-case default assumptions downwards in our cash flow analysis. 

RAM expects the OC levels to remain comfortably supportive of an AA₁ rating throughout the remaining duration of the respective transaction’s revolving period, as the structural terms only allow release of OC that exceeds 45%.

The ratings are moderated by the dynamic nature of the BNPL industry and evolving underwriting practices, which may influence future performance of the securitised receivables. These risks are partially mitigated by the transaction’s eligibility criteria, which help preserve asset quality. The Consumer Credit Act 2025 may introduce new compliance requirements that could affect MCM’s origination volumes or underwriting practices, with potential implications for portfolio growth and credit performance. We will continue to monitor developments in this regard and reassess the ratings should material changes arise.


Analytical contacts
Joel Thum
(603) 2708 8232
joel@ram.com.my

L Nurisya Abdullah
(603) 2708 8238
nurisya@ram.com.my

Media contact 
Sakinah Arifin 
(603) 2708 8212
sakinah@ram.com.my