RAM Ratings assigns final ratings to Tranche 5 Sukuk issued by RCE’s financing vehicle, Zamarad

Published on 23 Nov 2020.

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RAM Ratings has assigned final ratings of AAA/Stable and AA2/Stable to Zamarad Assets Berhad’s (the Issuer) Tranche 5 RM85 mil Class A Sukuk and RM15 mil Class B Sukuk, respectively. The Tranche 5 Sukuk is the fifth issuance under Zamarad’s RM2 bil Sukuk Murabahah Programme (the Programme), sponsored by RCE Marketing Sdn Bhd (RCEM). 

As with previous issuances, the Tranche 5 Sukuk will be collateralised by personal financing (PF) facilities extended to civil servants, originated by RCEM through its business partners. The PF facilities will be repaid via non-discretionary salary deductions processed by Angkatan Koperasi Kebangsaan Malaysia Berhad and EXP Payment Sdn Bhd (the exclusive agent for Yayasan Ihsan Rakyat’s Accountant General’s Department of Malaysia Code). The salary deduction feature coupled with the historically low attrition rate of civil servants reduces the transaction’s exposure to credit risks of the customers as long as the customers remain in active service.

In assigning the 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 28 October 2020. The RM100 mil rated Tranche 5 Sukuk will be backed by an outstanding principal balance of RM103.85 mil based on the portfolio cut-off date of 31 August 2020 and a required prefunded cash reserve of RM1.67 mil in the Finance Service Reserve Account at 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
Teoh Tze Yit
(603) 3385 2530

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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