01 July 2015
RAM Ratings is of the view that BGSM Management Sdn Bhd's (the Company) credit profile will remain intact despite the recent issuance of Maxis Berhad's 10-year RM840 million Islamic MTN (IMTN). The issuance is part of a RM5 billion unrated Sukuk Murabahah Programme (Sukuk Programme). We note that Maxis intends to progressively draw down from the Sukuk Programme, the proceeds of which may be utilised for working-capital requirements, capex or to refinance its existing debts. In 2015, the Group's debt load is expected to remain relatively unchanged, with its key financial metrics still within our expectations, given that some of its existing debts are anticipated to be reduced within the year.
RAM Ratings is of the view that BGSM Management Sdn Bhd's (the Company) credit profile will remain intact despite the recent issuance of Maxis Berhad's 10-year RM840 million Islamic MTN (IMTN). The issuance is part of a RM5 billion unrated Sukuk Murabahah Programme (Sukuk Programme). We note that Maxis intends to progressively draw down from the Sukuk Programme, the proceeds of which may be utilised for working-capital requirements, capex or to refinance its existing debts. In 2015, the Group's debt load is expected to remain relatively unchanged, with its key financial metrics still within our expectations, given that some of its existing debts are anticipated to be reduced within the year.
BGSM Management owns an indirect stake of 65% in Maxis. RAM's analysis of BGSM Management (rated AA3/Stable) continues to focus on the credit fundamentals of Maxis, given that the former relies solely on the latter's dividends to service its financial obligations under the IMTN. However, we note that higher-than-anticipated capex may affect dividend distributions from Maxis to the Company.
Media contact
Adeline Poh
(603) 7628 1021
adeline@ram.com.my
© Press Release 2015
