Rating action     MARC Ratings has affirmed its long- and short-term financial institution (FI) ratings of AA+/MARC-1 on China Construction Bank (Malaysia) Berhad (CCBM). The ratings outlook is stable.     Rationale     The long-term FI rating of AA+ is notched down from the FI rating of its parent CCB of AAA, which MARC Ratings has based on publicly av...

Rating action          MARC Ratings has affirmed its long-term and short-term financing institution (FI) ratings of AA+/MARC-1 on Kuwait Finance House (Malaysia) Berhad’s (KFH Malaysia) with a stable outlook.RationaleThe long-term FI rating of KFH Malaysia is notched down from the rating of its parent Kuwait Finance House KSC (KFH) of AAA/Stable based on public info...

Rating action         MARC Ratings has affirmed its AA-IS rating on Leader Energy Sdn Bhd’s outstanding ASEAN Green Sustainable and Responsible Investment (SRI) Sukuk Wakalah of RM245.0 million with a stable outlook. Leader Energy is the investment holding company of two solar power project companies, Leader Solar Energy Sdn Bhd (LSE I) and Leader Solar Energy II Sd...

Rating action      MARC Ratings has affirmed its MARC-1/AA- ratings on Sunway Berhad’s RM2.0 billion Commercial Papers/Medium-Term Notes (CP/MTN) Programmes. Concurrently, it has also affirmed its ratings of MARC-1IS(cg)/AA-IS(cg) on Sunway’s wholly-owned subsidiary Sunway Treasury Sukuk Sdn Bhd’s issuances under the RM10.0 billion Islamic Commercial Papers/Islamic Medium...

Rating action     MARC Ratings has affirmed its AA+IS rating on UMW Holdings Berhad’s (UMW) RM2.0 billion Islamic Medium-Term Notes (IMTN) Programme (Sukuk Musharakah) and its AA-IS rating on the RM2.0 billion Perpetual Sukuk Programme. The two-notch rating differential between the two programmes is in line with MARC Ratings’ methodology on notching principles of subordinated an...

Rating action     MARC Ratings has affirmed its A+IS(s) rating on Projek Lintasan Sungai Besi – Ulu Klang Sdn Bhd’s (PLSUKE) Sukuk Wakalah Programme of up to RM2.0 billion. The rating outlook is stable. The rating agency has also affirmed PLSUKE’s bank-guaranteed Facilities of up to RM500.0 million at AAAIS(bg)/stable. The Facilities were previously guaranteed by Danajamin Nas...

Summary          The latest retail and exports data suggest that a slower domestic economy in 2Q2023 is imminent given the anticipated slowdown in the global economy. On the bond market, while MGS commands positive yield differentials with the UST, the spread has narrowed significantly since 2022.The continuing divergence of interest rate policy between Malaysia ...

Rating action     MARC Ratings has affirmed its AAAIS  rating on TNB Northern Energy Berhad’s (TNB Northern) outstanding RM1.22 billion sukuk with a stable outlook.      TNB Northern is the funding vehicle for TNB Prai Sdn Bhd (TNB Prai), which operates a 1,071.43MW combined-cycle gas turbine (CCGT) power plant (comprising two power generation units — Un...

Rating action          MARC Ratings has affirmed its rating of AAAIS on TNB Western Energy Berhad’s (TNB Western) outstanding sukuk of RM3.7 billion with a stable outlook. TNB Western is the funding vehicle of TNB Manjung Five Sdn Bhd (TNB Manjung Five), a 100% indirectly-owned subsidiary of Tenaga Nasional Berhad (TNB). TNB Manjung Five operates and maintains ...

Summary         Global Bond Markets     Global government bonds traded mixed in May. The UST market came under selling pressure in May as investors monitored the progress of the US debt negotiations and assessed the Fed’s interest rate policy going forward.  In Europe, the bund ended mostly firmer in May, with yields mostly declining on softer Europea...