MARC affirms Sinar Kamiri's rating with stable outlook

Sinar Kamiri is a special purpose project company that owns and operates a 49.0MWac solar power plant in Sungai Siput, Perak


MARC has affirmed its AA-IS  rating on Sinar Kamiri Sdn Bhd’s (Sinar Kamiri) RM245.0 million Green Sustainable and Responsible Investment (SRI) Sukuk Wakalah. The rating outlook is stable. Sinar Kamiri is a special purpose project company that owns and operates a 49.0MWac solar power plant in Sungai Siput, Perak.

The rating affirmation primarily reflects Sinar Kamiri’s satisfactory project fundamentals that are underpinned by the terms of the 21-year power purchase agreement (PPA) with Tenaga Nasional Berhad (TNB), among which is to purchase energy generated by the plant at a fixed tariff. The rating is moderated by the risk of variability in solar irradiance which determines the amount of energy generated and performance risks associated with the plant’s operations.

In 2020, lower-than-projected irradiance had affected the plant’s electricity output by about 1.1% from P90 estimates. The lower irradiation was due to weather conditions. Accordingly, Sinar Kamiri posted marginally lower revenue of RM33.1 million against a projected RM33.4 million. Cash flow from operations (CFO) was recorded at RM31.3 million while CFO interest coverage was 2.29x. As at end-February 2021, total cash and bank balances stood at RM32.4 million, which would be sufficient to meet sukuk obligations of RM6.6 million and RM15.0 million due at end-July 2021 and end-January 2022.

The project is expected to achieve minimum and average finance service coverage ratios (FSCR) with cash of 3.09x and 3.29x under base case. On sensitising the plant’s unavailability of 2.4% and the increase in operations and maintenance cost by 10% under the more stringent P99 estimates, the minimum and average FSCR are 2.47x and 2.77x. These suggest the cash flow projections can withstand moderate sensitivities to P99 estimates.


Lee Chi Han, +603-2717 2939/
Sharidan Salleh, +603-2717 2954/ 

[This announcement is available on MARC’s corporate website at ]

----   DISCLAIMER    ----

This communication is provided by Malaysian Rating Corporation Berhad (MARC) based on 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.

© 2021 Malaysian Rating Corporation Berhad

Send us your press releases to

© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases