RAM Ratings reaffirms AAA rating of CJ Capital’s sukuk

Published on 12 Mar 2020.

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RAM Ratings has reaffirmed the AAA/Stable rating of CJ Capital Sdn Bhd’s (the Company) RM114 mil Sukuk Murabahah (2010/2020) (the Sukuk). The rating is premised on the Company’s ability to consistently meet its financial obligations, underpinned by timely and uninterrupted annuity payments from the Johor State Government (the State) – a strong counterparty. 

Following the receipt of the last annuity payment a month ahead of schedule in January 2019, the outstanding financial dues on the Sukuk are now fully funded. The Company’s RM23.66 mil of cash balances as at end-December 2019 can amply cover the Sukuk’s final principal and profit payments of RM15.83 mil due on 15 July 2020.

Wholly owned by Cahaya Jauhar Sdn Bhd, CJ Capital had been set up as a funding conduit to raise the Sukuk. Cahaya Jauhar, a 60:40 JV between UEM Land Berhad and the State (via Permodalan Darul Ta’zim Sdn Bhd), had been awarded the contract for the development and maintenance of Kota Iskandar, i.e. Johor’s new administrative centre in Iskandar Puteri. In return for the construction of Kota Iskandar, including the execution of variation orders for its first phase, Cahaya Jauhar is entitled to receive RM15 mil of annuity payments from State Secretary Johore (Incorporated) for 10 years until February 2019.


Analytical contact
Davinder Kaur Gill
(603) 3385 2525

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.

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