RAM Ratings has upgraded the rating of Midas Plantation Sdn Bhd's (Midas) Class B Sukuk Ijarah, from AA2 to AA1, with a stable outlook. The upgrade reflects the improved collateral value backing the Class B Sukuk Ijarah, following the full redemption of Midas' remaining RM10 million Class C Sukuk Ijarah and another RM10 million partial redemption of the Class B Sukuk Ijarah on 27 June 2011. Consequently, the loan-to-value ratio for the Class B Sukuk Ijarah has eased from 47% to 39%, with a stronger corresponding debt service coverage ratio of 2.63 times (from the previous 2.30 times).
On 22 June 2011, RAM Ratings reaffirmed the AAA rating of Midas' Class A Sukuk Ijarah and also the P1(s)/AAA(s) ratings of its Sukuk Ijarah Commercial Paper/Medium-Term Notes Programme. Both the long-term ratings have a stable outlook.
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security's market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations, transfer and convertibility risks, repatriation risk, currency risk or any other risk apart from credit risk.
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings' credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
Similarly, the disclaimers above also apply to RAM Ratings' credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
© Copyright 2011 by RAM Ratings
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Lim Chern Yit
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© Press Release 2011
