CREDIT ANALYSIS REPORT

AMAN SUKUK BERHAD - 2022

Report ID 6053890046832 Popularity 51 views 8 downloads 
Report Date Jul 2022 Product  
Company / Issuer Aman Sukuk Bhd Sector Property
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Rationale
Rating action         
MARC Ratings has affirmed its AAAIS rating on Aman Sukuk Berhad’s (Aman) Islamic Medium-Term Notes (IMTN) Programme of up to RM10.0 billion with a stable outlook.

Rationale      
The rating affirmation reflects the credit strength of the Malaysian government as the sole obligor of the annual sublease rental payments, and the quantum of which is deemed sufficient to meet the principal repayments and profit payments under the IMTN programme on a timely basis.

Aman is a wholly-owned funding vehicle of PBLT Sdn Bhd, the developer of 74 construction projects for Polis Diraja Malaysia (PDRM) comprising quarters and facilities. The projects were undertaken under a build, lease and transfer (BLT) model. Upon completion of each project, PBLT had entered into irrevocable lease and sublease agreements with the Malaysian government. 

The IMTNs were issued in seven independent series, proceeds from which were used to acquire the rights to entitle sublease rental receivables of the said projects from PBLT. The sublease rental payments were structured to meet the repayment schedule of each series for the IMTNs issued. As at end-March 2022, combined cash balance in the security accounts stood at RM2.1 billion, which is more than sufficient to meet upcoming IMTN profit and principal repayments of RM719.7 million in 2022 and RM675 million through 2023. The outstanding IMTN under the rated programme stood at RM2.8 billion as at June 9, 2022. 

Rating outlook     
The stable outlook reflects our expectation of continued timely sublease rental payments from the Malaysian government. 

Rating trajectory     

Downside scenario     
The rating and/or outlook could come under pressure in the event that PBLT faces any untimely receipt of sublease payments from the government that would reduce the cash balance to meet the sukuk repayments.


Key strengths

Credit strength of the Malaysian government as the sole paymaster
Predictable sublease rental payments sufficient to meet financial obligations 
Irrevocability of sublease obligations of the government



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