Published on 15 Nov 2019.
RAM Ratings has assigned final AAA/Stable and AA2/Stable ratings to Zamarad Assets Berhad’s Tranche 3 RM100 million Class A Sukuk and RM20 million Class B Sukuk, respectively. The Tranche 3 Sukuk is the third issuance under Zamarad’s RM2 billion Sukuk Murabahah Programme (the Programme). Zamarad is RCE Marketing Sdn Bhd’s (RCEM) fifth sponsored financing vehicle since it first tapped the capital market through Tresor Assets Berhad and subsequently through Al Dzahab Assets Berhad. As with previous issuances, the Tranche 3 Sukuk will be collateralised by personal financing facilities (extended to civil servants) originated by RCEM through its business partners. These facilities will be repaid primarily via non-discretionary salary deductions processed by the Accountant General’s Department and Angkatan Koperasi Kebangsaan Malaysia Berhad (better known as Angkasa), thereby materially reducing the transaction’s exposure to the borrower’s credit risks as long as the borrower remains in active service.
In assigning final ratings, we have reviewed all relevant transaction documents as well as assumptions applied and find them to be in line with our expectations when we assigned the preliminary ratings, published on 23 October 2019. The RM120 mil of Tranche 3 Sukuk will be backed by an outstanding principal balance of RM124.25 mil based on the portfolio cut-off date of 31 August 2019 and a required prefunded cash reserve of RM2.55 mil in the Finance Service Reserve Account at closing. Upon closing, RAM will monitor the transaction’s performance on a regular basis via monthly performance reports prepared by the Servicer and the Trustee. We will keep the ratings under surveillance as long as there are outstanding tranches in the Programme.
Tan Han Nee
(603) 3385 2529
(603) 3385 2577
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Ratings on Zamarad Assets Berhad