Cambodia Stock Market Launches in 2009
Cambodia plan to open a limited stock market in 2009. The draft legislation on corporate bonds is currently under process of finalizing during the interview with Prime Minister Hun Sen at a Financial Sector Development Conference on Thursday.When talking about the important of financial market, Prime Minister Hun Sen said “The introduction of a financial market is very important. It can help to mobilize financial resources for long term investment in social, economic and infrastructure projects in Cambodia.”
According to the International Monetary Fund, Cambodia’s finance sector is growing gradually. A number of new banks were established in the country and bank loans and deposits are increasing by around 40 percent.
Cambodia also secured a B+ rating for long-term foreign and local currency government notes from Standard & Poor’s. Standard & Poor’s also awarded a short-term foreign and local currency rating of B. Moody’s assigned a foreign currency notes ceiling of B1, a foreign-currency ceiling for bank deposits of B3, and a local currency notes ceiling and a local currency deposit ceiling of Ba1.
Here is below the bond ratings and their meaning from the Standard & Poor’s format:
AAA and AA: High credit-quality investment grade
AA and BBB: Medium credit-quality investment grade
BB, B, CCC, CC, C: Low credit-quality (non-investment grade), or “junk bonds”
D: Bonds in default for non-payment of principal and/or interest