Published on 23 Feb 2021.
RAM Ratings has downgraded the rating of Cendana Sejati Sdn Bhd’s (the Issuer) RM360 million Senior Sukuk Murabahah Medium Term Notes Programme (Senior Sukuk Programme) from C3/Negative to D.
The D rating reflects Cendana Sejati’s failure to redeem RM10 million of senior sukuk due on 19 February 2021, as confirmed by the Facility Agent, Kenanga Investment Bank Berhad, in an announcement via the Fully Automated System for Issuing/Tendering (or FAST). Cash balances in the designated accounts were only sufficient to meet profit payments due on the same date.
Wholly owned by Masraf Al Barakah Sdn Bhd (the Servicer and Originator), Cendana Sejati was incorporated specifically to purchase consumer-financing receivables from the Originator, primarily funded via the issuance of sukuk under the Senior Sukuk Programme. These consumer receivables are generated by credit sales to civil employees for the purchase of products. The source of cash flow to repay the Senior Sukuk will be collections made by Coshare Holdings Berhad – a related company of Cendana Sejati – through its automatic salary deduction mechanism. Please refer to our previous press release on Cendana Sejati (here) for further information.
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