RAM Ratings assigns final ratings to Tranche 6 Sukuk issuance by RCEM’s financing vehicle, Zamarad

Published on 06 Jul 2021.

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RAM Ratings has assigned final ratings of AAA/Stable and AA2/Stable to Zamarad Assets Berhad’s (the Issuer) Tranche 6 RM80 mil Class A Sukuk and RM20 mil Class B Sukuk, respectively. This is the sixth issuance under Zamarad’s RM2 bil Sukuk Murabahah Programme (the Programme), sponsored by RCE Marketing Sdn Bhd (RCEM). As with the previous issuances, the Tranche 6 Sukuk will be collateralised by personal financing facilities (extended to civil servants) originated by RCEM through business partners.

Tranche 6 is the first issuance under the Programme to have a Revolving Option which allows excess cash in the transaction to be utilised to purchase additional receivables from RCEM, subject to certain conditions. Among these, the purchase must meet a weighted average portfolio profit rate threshold and have no rating impact under RAM’s assessment. In view of the prerequisites, our current assessment of required credit enhancement assumes that the option is not exercised throughout the tenure of Tranche 6.

In assigning final ratings, we have reviewed all relevant transaction documents and required credit enhancement, considering the final sukuk pricing and tax estimates. We find these to be in line with our expectations when we assigned the preliminary ratings, published on 17 May 2021. Please refer to our final rating rationale for further details on the assigned ratings. 

RAM will maintain surveillance of the transaction 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 rated sukuk under this issuance.


Analytical contacts
Jack Kwan
(603) 3385 2532

Tan Han Nee
(603) 3385 2529


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
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Rating Rationale

Ratings on Zamarad Assets Berhad