KUALA LUMPUR: The Retirement Fund Inc (KWAP) has increased its interest in credit rating agency CTOS Digital Bhd, reports said.

A report on The Edge published today said filings with Bursa on Wednesday showed that KWAP acquired 1.51 million shares in CTOS Digital and disposed of 319,700 in the open market, raising its stake to 6.5 per cent or 150.18 million shares.

The report said Abrdn Malaysia Sdn Bhd also increased its investment in CTOS Digital by acquiring 6.52 million shares on Wednesday, raising its stake to 8.84 per cent or 204.37 million shares.

On March 13, KWAP bought 27.4 million shares amid a sell-off of CTOS Digital stocks, raising its stake in the company to 5.807 per cent.

CTOS Digital lost 13 per cent of its share price following a High Court ruling on March 11 that said it lacked the authority to create credit scores.

Judge Datuk Akhtar Tahir said the credit rating agency was only empowered to be a repository of the credit information to which its subscribers have access.

He ruled that there was no provision in the Credit Reporting Agencies Act 2010 (CRAA) empowering CTOS to formulate a credit score or create its own criteria or percentage to formulate a credit score.

Akhtar said this in his judgement before ordering CTOS to pay RM200,000 in general damages to businesswoman Suriati Mohd Yusof, who owned a resort in Pulau Perhentian, for inaccurate credit rating.

Suriati, 43, had sued CTOS for alleged negligence and breach of fiduciary duty in misrepresenting her credit rating leading to a loss of reputation, personal losses as well as business losses.

https://www.nst.com.my/news/nation/2024/03/1032356/reports-kwap-boosts-stake-ctos-digital