MARC has affirmed the ratings of ARL Power Sdn Bhd’s (ARLP) RM177.0 million Al Bai’ Bithaman Ajil Secured Serial (ABBA) Bonds and RM50.0 million Islamic Medium Term Notes (IMTN) at A+ID. The ratings carry a stable outlook. The ratings principally reflect the strength of cash flows generated under a 21-year power purchase agreement (PPA) with Sabah Electricity Sdn Bhd (SESB), an 80%-own...

Major Rating FactorsStrengths Strong cash flows generated under a 21-year power purchase agreement (PPA) Declining debt leverage and reducing debt service burden Challenges/Risks High maintenance costs of the plant’s enginesProspect of lower revenue and cash flows with the reduction in capacity payment (CP) effective 31 October 2007 as provided under the PPA. Rationale   ...

The ratings of ARL Power Sdn Bhd’s (ARLP) RM177.0 million Al-Bai’ Bithaman Ajil Secured Serial Bonds (ABBA) and RM50.0 million Islamic Medium Term Notes (IMTN) have been reaffirmed at A+ID. The rating reaffirmations are based on the stable and predictable cash flows of the company which have allowed it to service its debt obligations on a timely manner, the presence of a long-term fu...

The ratings of ARL Power Sdn Bhd’s (ARLP) RM177.0 million Al-Bai’ Bithaman Ajil Secured Serial Bonds (ABBA) and RM50.0 million Islamic Medium Term Notes (IMTN) have been reaffirmed at A+ID. The rating reaffirmations are based on the stable and predictable cash flows of the company which have allowed it to service its debt obligations on a timely manner, the presence of a long-term fu...

The ratings of ARL Power Sdn Bhd’s (ARLP) RM177.0 million Al-Bai’ Bithaman Ajil Secured Serial Bonds (ABBA) and RM50.0 million Islamic Medium Term Notes (IMTN) have been reaffirmed at A+ID. The rating reaffirmation is based on the stable and predictable cash flow which has allowed them to service its debt obligations on a timely manner, the presence of a long-term fuel supply contrac...

The rating upgrade on ARL Tenaga Sdn Bhd’s ABBA is backed by its commendable ability to service its obligation under the ABBA in a timely manner backed by the stable and predictable cash flow of the company; the presence of a long-term fuel supply contract which eliminates supply disruption risk; and an issue structure which promotes the scheduled amortization of the Islamic debt. These st...

The assigned rating reflects the stable and predictable cash flow which is expected to cover the company’s debt servicing requirements comfortably; the presence of a long-term fuel supply contract which eliminates supply disruption risk; and an issue structure which promotes the scheduled amortization of the Islamic debt. These strengths are moderated by the declining but still substantia...

ARL Tenaga Sdn Bhd’s (“ARLT”) rating affirmation reflects the stable and predictable cash flow which is expected to cover the company’s debt servicing requirements comfortably; the presence of a long-term fuel supply contract which eliminates supply disruption risk; the adoption of proven engine design and well-developed operating methods for its plant; and an issue stru...