The ratings of Puncak Niaga (M) Sdn Bhd’s (“PNSB”) RM1.02 billion Bai Bithaman Ajil Islamic Debt Securities (“BaIDS”) and RM546.875 million Junior Notes A (“A Notes”) have been reaffirmed at AAID and A+ respectively. MARC has also affirmed PNSB’s RM435 million Nominal Value Redeemable Unsecured Bonds (“RUBs”) ratings at A+. The ratings ca...

MARC has reaffirmed Syarikat Bekalan Air Selangor Sdn Bhd’s (SYABAS) RM3.0 billion Bai Bithaman Ajil Commercial Papers/Medium Term Notes Programme ratings of MARC-1ID /AA-ID. The ratings carry a stable outlook. The ratings reflect SYABAS’ dominant position as the sole distributor of treated water for the states of Selangor, Kuala Lumpur and Putrajaya; the low risk nature of the water i...

Major Rating FactorsStrengthsFinancial profile remains sound with the potential to improve further in the medium-term;Some 70% to 80% of SPLASH’s revenues is derived from capacity charges which promotes revenue stability; andRobust demand for water provided by SPLASH from ultimate consumers, of which residential customers represent the majority.Challenges/RisksStructural uncertainties in the...

Major Rating FactorsStrengthsDebt repayment ability supported by reliable dividend stream from SPLASH which exhibits a strong financial profile;Some 70% to 80% of SPLASH’s revenues is derived from capacity charges which promotes revenue stability;Debt service reserve, originally pre-funded to RM35 million, provides insulation against uncertain cash flows; andConsiderable refinancing flexibil...

Major Rating FactorsStrengthsDebt repayment ability supported by reliable dividend stream from SPLASH which exhibits a strong financial profile;Some 70% to 80% of SPLASH’s revenues is derived from capacity charges which promotes revenue stability;Shareholders’ capacity and willingness to meet shortfalls in debt service provide insulation against uncertain cash flows; andConsiderable re...

Major Rating FactorsStrengths Predictable earnings and cashflow that derives from contractual tariff payments by creditworthy terminal users; Tariffs are designed to allow for the recovery of costs and an appropriate rate of return; andFavourable operating profile of the independent oil terminal (“IOT”). Challenges/Risks Modest level of financial flexibility; andSusceptibility of the I...

MARC has affirmed the rating of A+ID of Zecon Toll Concessionaire Sdn Bhd’s (“ZTC”) RM60 million Bai-Bithaman Ajil Islamic Debt Securities (“BaIDS”). The rating carries a stable outlook. ZTC’s revenue generating asset is the Tun Abang Salahuddin Bridge in Sarawak.The rating reflects the satisfactory traffic and revenue profile of the bridge relative to debt serv...

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   ...

MARC has reaffirmed Kapar Energy Ventures Sdn Bhd’s (KEV) RM3,402 million Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) rating at AA+ID.  The rating carries a stable outlook.  The rating principally reflects the creditworthiness of Tenaga Nasional Bhd (TNB), its off-taker under a 25-year power purchase agreement (PPA), and as majority shareholder.  Under the PPA, KE...

Major Rating FactorsStrengthsDemonstrated willingness and ability of shareholders to extend timely financial support;Favourable long-term fundamentals of the SPRINT highway;Financial flexibility to defer debt service on loan stock issued to SPRINT Holdings; andStrong covenant package in respect of rated facilities.Challenges/RisksProject has incurred pre-tax losses since FY2004;Thin CFO interest c...