MARC has assigned a final rating of AA-IS to Jimah East Power Sdn Bhd's (JEP) Sukuk Murabahah of up to RM10.0 billion. The outlook on the rating is stable. The final rating takes into account the amendments made to the issue structure and terms of the rated issuance since the preliminary rating was announced on September 2, 2015. The key amendment requires the project sponsors, Tenaga Nasional Berhad and Mitsui & Co., Ltd, to inject equity into JEP on a pro-rata basis with the utilisation of project debt based on the finance-to-equity ratio not exceeding 80:20. In addition, project sponsors will provide an undertaking to address any project cost overruns due to variance in exchange rates from the base case cash flow projections during the construction period. MARC regards these amendments to the project financing terms as credit positive.
Upon review of the final documentation of the forthcoming issuance, MARC is satisfied that the terms and conditions of the Sukuk Murabahah remain commensurate with the earlier assigned preliminary rating of AA-IS.
Full details of the assigned rating have been provided in JEP's preliminary rating announcement on September 2, 2015. The full Credit Analysis Report is available on MARC's website at www.marc.com.my.
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Contacts: Ng Chun Kean, +603-2082 2230/ chunkean@marc.com.my; David Lee, +603-2082 2255/ david@marc.com.my.
[This announcement is available in the MARC corporate homepage at www.marc.com.my]
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This communication is provided by Malaysian Rating Corporation Berhad (MARC) on the basis of information believed by MARC to be accurate and reliable as derived from publicly available sources or provided by the rated entity or its agents. MARC, however, has not independently verified such information and makes no representation as to the accuracy or completeness of such information. Any assignment of a credit rating by MARC is solely to be construed as a statement of its opinion and not a statement of fact. A credit rating is not a recommendation to buy, sell, or hold any security.
© 2015 Malaysian Rating Corporation Berhad
© Press Release 2015
