Global Markets     In June, UST yields along the 1m5y curve surged 2bps to 16bps following the more hawkish tone of the Fed at the conclusion of its latest FOMC meeting. However, UST yields at the longer end fell by 3bps to 20bps, flattening the yield curve. A rally in long-term UST yields was spurred by the Fed’s insistence that the high inflationary periods in the US are transit...

Rating action     MARC has affirmed its AAAIS rating on MISC Berhad’s RM2.5 billion Islamic Medium-Term Notes (IMTN) programme with a stable outlook. Currently, there is no outstanding amount under the programme and the programme will expire in September 2022.Rationale    The rating continues to benefit from a rating uplift on MARC’s expectation of strong parental...

Rating action     MARC has assigned a rating of AIS to Tropicana Corporation Berhad’s (Tropicana) RM2.0 billion existing Perpetual Sukuk programme with a stable outlook. The Perpetual Sukuk is rated one notch lower than Tropicana’s corporate credit rating of A+/stable to reflect its features and is in line with MARC’s methodology on subordinated instruments. No equity credit h...

Rating action     MARC has affirmed Grand Sepadu (NK) Sdn Bhd’s (Grand Sepadu) rating for its RM210 million Sukuk Murabahah Issuance at AA-IS with a stable outlook.Rationale     The affirmation reflects Grand Sepadu’s adequate cash flow coverage, underpinned by the relatively stable traffic performance of the New North Klang Straits Bypass (NNKSB). The rating also...

Rating action     MARC has affirmed its long-term and short-term financial institution (FI) ratings of AA-/MARC-1 on KAF Investment Bank Berhad (KAF IB) with a stable outlook.Rationale     The ratings primarily reflect KAF IB’s low-risk business model and strong liquidity and capitalisation levels, underpinned by a conservative investment strategy. The ratings are m...

Rating action     MARC has assigned final ratings of AAAIS / MARC-1IS on Small Medium Enterprise Development Bank Malaysia Berhad’s (SME Bank) Islamic Medium-Term Notes (IMTNs) Programme of up to RM3.0 billion (which shall include Sustainability IMTNs) and Islamic Commercial Papers (ICPs) Programme of up to RM1.0 billion with a combined limit in nominal value of up to RM3.0 b...

Rating action     MARC has affirmed its ratings on national mortgage corporation Cagamas Berhad’s bonds and sukuk issuances as follows:Conventional and Islamic Commercial Papers (CP/ICP) programmes with a combined aggregate limit of RM20.0 billion at MARC-1/MARC-1ISConventional and Islamic Medium-Term Notes (MTN/IMTN) programmes of up to RM60.0 billion at AAA/AAAISRationale  ...

Rating action     MARC has affirmed its AA-IS rating on Southern Power Generation Sdn Bhd’s (Southern Power) Sukuk Wakalah of up to RM4.0 billion with a stable outlook. Southern Power was established to develop a 2x720MW combined-cycle gas-fired power plant in Pasir Gudang. It is 70% directly and indirectly owned by Tenaga Nasional Berhad (TNB) while the remaining is held by SIPP ...

Rating action     MARC has assigned a corporate credit rating of A+ to Yinson Holdings Berhad (Yinson) with a stable outlook.Rationale     The assigned rating incorporates Yinson group’s strong business profile in providing floating, production, storage and offloading vessels (FPSOs) for the upstream oil and gas (O&G) industry. The group has long-term earnings v...

Global Markets In May, UST yields drifted lower despite the unexpected 4.2% y-o-y rise in April CPI. Rally in the UST market was supported by the Fed’s insistence that the current spike in inflation is transitory and several officials talking down future tapering plans. In contrast, sovereign yields in the euro zone were generally higher in May as economies and coronavirus immunisation prog...