MARC has suspended its AA-IS rating on Jimah East Power Sdn Bhd’s (JEP) Sukuk Murabahah Programme (Sukuk) of up to RM8.4 billion. Since assigning the rating on the Sukuk on October 28, 2014, the long delay to the issuance of Sukuk and the original scheduled financial close of JEP’s proposed development of 2x1,000MW ultra-supercritical coal-fired power plant in Negeri Sembilan (Project 3B) has prompted the suspension.

MARC believes that the key factors and assumptions used to arrive at the rating would now need to be reassessed in light of the delay, which may have implications on meeting the project’s original timeline of commercial operations date. The rating agency will monitor the developments on JEP and may reinstate the rating upon assessment of updated information on Project 3B from project sponsors. Alternatively, the rating could be withdrawn within the next 90 days if no such information is forthcoming.

Contacts:
Koh Shu Yunn, +603-2082 2243/ shuyunn@marc.com.my;
Ng Chun Kean, +603-2082 2230/ chunkean@marc.com.my; David Lee, +603-2082 2255/ david@marc.com.my.