Myanmar names Citi, StandChart as sovereign credit rating advisors

NAY PYI TAW - The Government of Myanmar on Wednesday announced the appointment of Citi and Standard Chartered Bank as its Sovereign Credit Ratings Advisors to act as a bridge between the Government and ratings agencies Standard & Poor’s, Fitch Ratings and Moody’s. The two banks will also support Myanmar’s efforts to enhance data collection and improve investor outreach.

The announcement was made a day before the ousting of Thura Shew Mann, Head of Myanmar’s governing party. He was Chairman of the military-backed Union Solidarity and Development Party. Elections in Myanmar are due in November.
In a joint statement, the two banks said the timeline for Myanmar in achieving credit ratings depends on the Government’s goals and the speed at which quality and relevant data and information can be collected and analysed by the ratings agencies.

“Achieving a credible credit rating paves the way for Myanmar to increase openness and engagement with, and strengthen its position in the international investment community,” the statement said.

“A good credit rating will improve the country’s borrowing costs and enhance Myanmar’s capital raising strategies and dialogue with the international investment community. Increased transparency will also increase investors’ confidence in the safety of their investments in Myanmar, and in turn, attract a larger group of investors and promote foreign direct investment and trade flows.

“This will ultimately strengthen Myanmar’s brand and contribute to the broader economic development goals of the country.”

Darren Buckley, Citi Country Officer for Thailand, Myanmar, Cambodia and Laos, said that over the past decade, Citi has served as ratings advisor to 10 governments in Asia, Europe, the Middle East and Latin America, including five with similar credit profiles to that of Myanmar.

“Citi had a branch presence in Myanmar from 1919 to 1942, and we very much look forward to re-engaging and supporting the further development of this exciting growth market," he said.

Lyn Kok, President and Chief Executive Officer, Thailand and Greater Mekong, Standard Chartered Bank, said the bank’s association with Myanmar dates back more than 150 years. StandChart was the first major international bank to establish a representative office in Myanmar in 2013. www.citigroup.com www.sc.com (ATI).