RAM Ratings assigns final ratings to Tranche 3 Sukuk issued by RCE’s financing vehicle, Zamarad

Published on 15 Nov 2019.

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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.


Analytical contact
Tan Han Nee
(603) 3385 2529

Media contact
Padthma Subbiah
(603) 3385 2577


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.

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 2019 by RAM Rating Services Berhad

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Ratings on Zamarad Assets Berhad