MARC upgrades QSP Semenanjung's green SRI Sukuk rating to AA-IS

The rating agency has concurrently revised the rating outlook to stable from positive

  

MARC has upgraded Quantum Solar Park (Semenanjung) Sdn Bhd’s (QSP Semenanjung) RM1.0 billion Green Sustainable and Responsible Investment (SRI) Sukuk rating to AA-IS from A+IS. The rating agency has concurrently revised the rating outlook to stable from positive.

The upgrade incorporates the steady operational performance exhibited by QSP Semenanjung’s three 50MW solar power plants that is line with our expectations. Actual energy production has been consistently higher than P90 estimates since the plants’ full commercial operation dates in 2019. As a result, revenue generation was 5.2% higher than the projected RM136.8 million in 2020. Its finance service coverage ratio (FSCR) without cash of 1.47x is in line with initial projections.

The strength of the project fundamentals remains underpinned by the 21-year solar power purchase agreements entered into by each of QSP Semenanjung’s three project companies with Tenaga Nasional Berhad (AAA/Stable). The agreements mitigate demand risk. As one of the earliest players in the renewable energy segment, QSP Semenanjung has benefitted from relatively higher tariffs. During 2020, there were no major operational issues; the plants’ performance ratios were between 77.0% and 79.4%.

QSP Semenanjung has sufficient liquidity, with cash balances of RM126.3 million as at end-2020 that can meet sukuk profit and principal repayments totalling RM100.4 million in 2021. The project’s minimum and average pre-distribution FSCR with cash are forecast at 1.72x and 2.10x throughout the tenure of the sukuk, slightly higher than initial projections at the inception of the project.

-Ends-

Contacts:
Neo Xue Wei, +603-2717 2937/ xuewei@marc.com.my;
Sharidan Salleh, +603-2717 2954/ sharidan@marc.com.my 

[This announcement is available on MARC’s corporate website at www.marc.com.my ]

--- 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 pressrelease.zawya@refinitiv.com

© 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