PUTRAJAYA BINA SDN BHD - 2024 |
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| Report ID | 60538900469830 | Popularity | 793 views 32 downloads | |||||
| Report Date | Aug 2024 | Product | ||||||
| Company / Issuer | Putrajaya Bina Sdn Bhd | Sector | Property | |||||
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| Rationale |
Rating action MARC Ratings has affirmed its AAAIS rating on Putrajaya Bina Sdn Bhd’s (PBSB) RM1.58 billion Islamic Medium-Term Notes (Sukuk Wakalah) Programme. The rating outlook is stable. Rationale The rating affirmation is mainly premised on the sufficiency of the periodic payment streams from the Malaysian government in the form of availability charges (AC) to meet the financial obligations under the Sukuk Wakalah Programme. The credit strength of the government (AAA/Stable) eliminates obligor credit risk. PBSB’s status as a wholly-owned subsidiary of government-related entity Putrajaya Holdings Sdn Bhd (PJH; AAA/Stable), the master developer of the federal government’s administrative capital in Putrajaya, underpins the rating. PBSB completed the construction of nine blocks of government office buildings and one block of shared facilities in Parcel F, Precinct 1, Putrajaya, under a government concession agreement in April 2019. It receives AC payments of RM215.6 million p.a. under the 25-year asset management phase of the concession agreement. PBSB receives maintenance charges (MC) of RM69.2 million p.a. subject to meeting specific KPIs. The financial service cover ratio (FSCR) would stand at a healthy 2.59x as at end-2024 based on the projected cash flow against a covenant of 1.50x. Rating outlook PBSB’s stable outlook assumes no disruption to the timely and predictable payments from the Malaysian government to meet its financial obligations throughout the tenure of the Sukuk Wakalah Programme. Rating trajectory Downside scenario Rating pressure would arise if there are changes in the timeliness and quantum of the payment stream from the government and if PJH ceases to be a controlling shareholder of PBSB. Key strengths
Key risk
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