MARC Ratings flags governance and transparency worries at Zetrix AI
MARC Ratings downgraded Zetrix AI Bhd’s MARCWatch status to Negative, citing missing information on borrowings, spending and governance issues.
MARC Ratings moved Zetrix AI Bhd from a Developing to a Negative MARCWatch status, highlighting a lack of transparency around the firm’s credit profile. The agency noted it still does not have details on the sharp rise in borrowings or how substantial development expenditures are being allocated and used. The situation was worsened by the resignation of the company’s external auditor, reports of unpaid liabilities and the suspension of certain business activities.
Zetrix AI’s Islamic Medium-Term Notes Programme, which can raise up to RM2 billion and was previously rated AA-IS, stays under heightened scrutiny. MARC Ratings warned that without satisfactory information, the rating could be suspended or withdrawn entirely.
Why it matters
The downgrade signals potential credit risk for investors in Zetrix AI’s debt and raises doubts about the company’s financial governance.
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