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...

Rating action      MARC Ratings has affirmed its AAIS rating on S P Setia Berhad’s RM3.0 billion Islamic Medium-Term Notes (IMTN) Programme with a stable outlook. The outstanding under the programme currently stands at RM2.0 billion. Rationale The affirmed rating primarily reflects S P Setia's entrenched market position in township development and healthy sales trac...

Rating action      MARC Ratings has affirmed its AAAIS /MARC-1IS ratings on Gas Malaysia Distribution Sdn Bhd’s (GMD) Islamic Medium-Term Notes (IMTN) programme and Islamic Commercial Papers (ICP) programme with a combined limit of up to RM1.0 billion. The ratings outlook is stable. As at end-April 2023, the outstanding amount under the programmes stood at RM241.0 million.&nb...

Rating action      MARC Ratings has affirmed its financial institution (FI) rating of AAA on Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank). Concurrently, the rating agency has affirmed its ratings of AAAIS /MARC-1IS on the bank’s Islamic Medium-Term Notes (IMTN) Programme of up to RM3.0 billion and Islamic Commercial Papers (ICP) Programme of up to RM1.0 bill...

Rating action          MARC Ratings has affirmed its AA-IS rating on Konsortium KAJV Sdn Bhd’s (KAJV) RM1.0 billion Sukuk Wakalah Programme with a stable outlook.RationaleThe rating reflects the credit strength of the Terengganu state government to meet its payment obligations due on the Facility Payment Certificates (FPC) it issued for work completed by KAJV for th...

Rating action          MARC Ratings has affirmed its rating of AA-IS  on TSH Sukuk Murabahah Sdn Bhd’s RM150 million Medium-Term Notes (IMTN) Programme with a stable outlook. The total outstanding stood at RM90 million as at end-March 2023, with the maturity date on June 16, 2023.The rating assessment on TSH Sukuk Murabahah is based on the strength of its paren...

Summary          Global Bond MarketsGlobal government bonds traded mixed in April. The UST yields largely declined on rising anticipation that the Fed’s rate hike cycle may end soon as inflation continued to moderate. Meanwhile in Europe, the longer-tenure 30-year bund yield rose as the market expected higher interest rate for longer to contain the elevated inflatio...