RAM Ratings reaffirms Notable Vision’s MTN ratings

Published on 28 Oct 2022.

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RAM Ratings has reaffirmed the ratings of the Medium-Term Notes (MTNs) issued under Notable Vision Sdn Bhd’s (NVSB or the Issuer) RM750 mil MTN Programme, a property securitisation involving The Westin Kuala Lumpur (The Westin KL or the Property), a five-star hotel operated by Marriott International Group (Marriott). The Property is part of Frasers Hospitality Trust’s (FHT) portfolio of properties. FHT is a hospitality stapled trust listed on Singapore Exchange Securities Trading Limited and sponsored by Frasers Property Limited (FPL).

Notes Series 2019-A


Issue Amount
(RM mil)



Class A Senior MTNs



12 July 2024

12 January 2026

Class B Junior MTNs



12 July 2024

12 January 2026

Class C Junior MTNs



12 July 2024

12 January 2026







The reaffirmation of the Class A Senior MTNs’ rating reflects the strong collateral coverage afforded by The Westin KL which we view as a good quality asset, and robust liquidity position supported by its sponsor and prefunded cash reserve. Given the Property’s prime location and affiliation with a reputable operator, we have maintained its adjusted valuation at RM271.7 mil (72.3% of its latest market value or RM613,218 per room), leaving the Class A Senior MTNs with a comfortable loan to value (LTV) ratio of 35.0%.

The Class B Junior MTNs’ rating reflects the weak collateral and debt covers that remained commensurate with the rating. The rating of the Class C Junior MTNs indicates the low likelihood of repayment and its deep subordination to the other classes. Coupon payments on the Junior MTNs are variable and payable only if residual profits are available after the payment of senior costs and coupons on the Senior MTNs. 

The rating also considers The Westin KL’s recovering performance since national borders reopened in April 2022. The Property’s current average daily rate (ADR) is higher than those recorded in 2019 while average occupancy rate (AOR) remained subdued, partly due to limited capacity as a result of worker shortages. The Westin KL’s net cashflow for the April to June 2022 period turned positive, with revenue per available room rebounding to 50%-69% of pre-pandemic levels. While we expect continued improvement in the Property’s performance and cashflow, the lockdown in China, the labour crunch, geopolitical risks and economic headwinds continue to pose challenges.

We expect the transaction’s liquidity position to stay supported by its strong sponsor, as evidenced by an aggregate of RM40 mil of capital injected by FPL into JBB Hotels Sdn Bhd (original owner of the Property and indirect wholly owned subsidiary of FPL) to date. A prefunded cash reserve equivalent to nine-month coupon for the Class A Senior MTNs and RM12.2 mil of cash balances in the Issuer’s Revenue and Operating Accounts as at end-June 2022 provide ample liquidity to meet Senior MTN coupon payments in the unlikely event that JBB Hotels (as the lessee) fails to honour its lease payment obligations to NVSB. 


Analytical contacts
L Nurisya Abdullah
(603) 3385 2492

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
© Copyright 2022 by RAM Rating Services Berhad

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