RAM Ratings downgrades Cendana Sejati’s Senior Sukuk rating to D following non-payment event

Published on 23 Feb 2021.

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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.


Analytical contact
Lim Chern Yit
(603) 3385 2528

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.

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Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

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