MARC has affirmed its rating of AAAIS/Stable on Midciti Sukuk Berhad’s (MSB) RM880 million Islamic Medium-Term Notes Programme (Sukuk Programme) and subsequently withdrawn the rating following the early redemption of the outstanding sukuk on April 25, 2014.

MSB is a wholly-owned funding vehicle of KLCC Real Estate Investment Trust (KLCC REIT), which owns PETRONAS Twin Towers, Menara 3 Petronas and Menara ExxonMobil. The affirmed rating considered the credit strength of PETRONAS as the head lessee of the PETRONAS Twin Towers as well as the amortising structure of the programme and the revolving credit facility that was set up to address refinancing and rollover risks. MARC viewed the sukuk as lease-backed instruments supported by third-party structured liquidity and accordingly considered the credit quality of the sukuk to be sensitive to changes in the credit strength of PETRONAS and KLCC REIT.

Upon withdrawal of the rating, MARC will cease analytical coverage on MSB. 

Contacts:
Taufiq Kamal, +603-2082 2251/ taufiq@marc.com.my;
Jasmine Kua, +603-2082 2280/ jasmine@marc.com.my.