Published on 21 Mar 2022.
RAM Ratings has assigned final ratings of AAA/Stable and AA2/Stable to Zamarad Assets Berhad’s (the Issuer) Tranche 7 RM170 mil Class A Sukuk and RM40 mil Class B Sukuk, respectively. This is the seventh issuance under Zamarad’s RM2 bil Sukuk Murabahah Programme (the Programme), sponsored by RCE Marketing Sdn Bhd (RCEM or the Originator). As with previous issuances, the Tranche 7 Sukuk will be collateralised by personal financing facilities extended to civil servants, originated by RCEM through its business partners.
The Tranche 7 Sukuk will include a Revolving Option (RO) which allows excess cash in the transaction to be utilised to purchase additional receivables from RCEM, subject to the fulfilment of certain conditions. Among others, all future purchases must meet a minimum weighted average portfolio profit rate, the rating outlook of the outstanding sukuk is either stable or positive, and RAM’s assessment indicates that the exercise of the RO will have no rating impact on the outstanding sukuk. Our current assessment assumes that the RO is not exercised throughout the tenure of Tranche 7 Sukuk.
In assigning final ratings, we have reviewed all relevant transaction documents and required credit enhancement, taking into consideration 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 February 2022. Please refer to our final rating rationale for further details on the assigned ratings.
RAM will monitor the transaction 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.
L Nurisya Abdullah
(603) 3385 2529
Lim Chern Yit
(603) 3385 2528
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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Ratings on Zamarad Assets Berhad