MARC has affirmed its AA-IS rating on Malaysia Marine and Heavy Engineering Holdings Berhad’s (MHB) RM1.0 billion Sukuk Murabahah Programme with a stable outlook. MHB’s strong competitive advantage as the largest domestic offshore fabricator, its conservative balance sheet and strong liquidity position are key rating drivers. The rating also incorporates a one-notch uplift based on the MH...

MARC has affirmed its insurer financial strength rating of AA+ with a stable outlook on Bermuda-based International General Insurance Co. Ltd. (IGI). The rating is based on Malaysia’s national scale. The affirmed rating is mainly driven by IGI’s well-diversified underwriting portfolio across business lines and geographies and a strong capitalisation level to support growth. These strength...

MARC has affirmed its AA- rating on Central Impression Sdn Bhd’s (CISB) RM120.0 million Fixed Rate Serial Bonds. The rating outlook remains negative. The rating outlook was revised to negative last year over its reduced cash buffer due to a higher tax liability arising from underpayments in prior years totalling RM3.2 million. CISB is required to settle the tax arrears in four annual instal...

MARC has maintained its rating of CIS on Talam Transform Berhad’s (Talam) outstanding RM40.0 million Settlement Bithaman Ajil Islamic Debt Securities (Settlement BaIDs) as at June 5, 2020. Under the restructuring exercise undertaken by Talam in March 2019, the maturity date of the Settlement BaIDs was extended by 18 months to December 28, 2020 from June 28, 2019.The rating considers Talam's weak...

MARC has affirmed its AA-IS and A- ratings on Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd’s (Kesturi) RM2.3 billion Sukuk Musharakah (Senior Sukuk) and RM180 million Redeemable Secured Junior Bonds (Junior Bonds). The three-notch rating differential between the Senior Sukuk and Junior Bonds reflects the latter’s subordination to the Senior Sukuk with regard to security ranking and payment pr...

MARC has affirmed its AA-IS rating on Konsortium KAJV Sdn Bhd’s (KAJV) RM1.0 billion Sukuk Wakalah Programme with a stable outlook. The rating reflects the credit strength of the Terengganu State Government to meet the unconditional and irrevocable payment obligations on the Facility Payment Certificates (FPC) issued for work done under the Kuala Terengganu Utara (KTU) water supply project. MARC...

Terengganu contributes around 2.5% towards national gross domestic product (GDP). In 2019, the state’s real GDP grew at a faster pace of 3.3% (2018: 2.5%) due to broad-based growth buoyed by the services and construction sectors. Household income growth has been strong; over the 2016-2019 period, it came in at 5.8% p.a. on a compounded annual growth rate (CAGR) basis, the fastest in Malaysia.&nb...

MARC has affirmed Bank Pembangunan Malaysia Berhad’s (Bank Pembangunan) financial institution (FI) rating at AAA. Concurrently, the rating agency has assigned its rating of AAAIS to Bank Pembangunan’s RM5.0 billion Islamic Medium-Term Notes Programme (IMTN) Programme. The ratings carry a stable outlook. Bank Pembangunan’s status as a wholly government-owned development financial institu...

Johor, Malaysia’s second-largest state and among the most developed, is known as the Southern Gateway of Malaysia due to its proximity to Singapore. Its economy was one of the fastest growing in Malaysia with a median real GDP growth of 5.8% y-o-y between 2015 - 2019. Its intrinsic strength is underpinned by its large, resilient and diversified economy, strong fiscal management and low debt.&nbs...

MARC has assigned a rating of AAAIS to Pengerang LNG (Two) Sdn Bhd’s (PLNG2) proposed Islamic Medium-Term Notes (IMTN) programme of up to RM3.0 billion. The rating outlook is stable.PLNG2 owns a regasification terminal, Regasification Terminal Pengerang (RGTP), through which natural gas is supplied to the USD27.0 billion Pengerang Integrated Complex (PIC), Petroliam Nasional Berhad (PETRONAS)’...