RAM Ratings affirms rating of Swirl Assets’ Senior Notes backed by receivables due from Air Selangor

Published on 22 Sep 2023.

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RAM Ratings has affirmed the AAA/Stable rating of the RM595 mil Senior Notes under Swirl Assets Berhad’s (the Issuer) RM700 mil Asset-Backed Medium-Term Notes Facility. 

The transaction monetises the balance of receivables due under the Share Purchase Agreement (SPA) between Syarikat Pengeluar Air Selangor Holdings Bhd (SPLASH Holdings or the Originator) and Pengurusan Air Selangor Sdn Bhd (Air Selangor or the Obligor). The SPA formalises the Obligor’s purchase of the Originator’s entire stake in Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH). Established as a sole-purpose funding vehicle, Swirl Assets’ cashflow receipts stem solely from scheduled and fixed annual instalments payable by Air Selangor under the SPA (Annual Instalments).

The rating affirmation reflects the credit profile of Air Selangor (click here for more information) in its role as the Obligor for the Annual Instalments. The largest water operator in Malaysia, Air Selangor is the sole licence holder for water treatment and distribution services in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. It plays a critical public policy role for the Selangor state government. The highly anticipated support from the state government in times of financial distress underpins our view that the Obligor’s credit strength mirrors that of the state. Selangor’s State Implicit Strength (SIS) is assessed to be robust, the highest ranking in RAM’s SIS Framework. 

Swirl Assets’ receipt of Annual Instalments has been timely to date. As at end-June 2023, RM116.11 mil of cash in the transaction’s Settlement Account and the remaining RM417.99 mil of Annual Instalments to be received are more than sufficient to cover coupon and principal obligations under the outstanding Senior Notes. Based on the designated accounts report as at the same date, actual transaction expenses incurred were largely in line with the levels estimated.

The transaction prohibits coupon and principal payment under the unrated Junior Notes until all Senior Notes have been fully redeemed. Designated accounts are prefunded with cash upfront via issue proceeds to cover the Issuer’s transaction expenses during the tenure of the Senior Notes and early redemption premiums on the notes, if any.


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Liew Kar Ling
(603) 3385 2586

Tan Han Nee
(603) 3385 2529

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Sakinah Arifin
(603) 3385 2500


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 2023 by RAM Rating Services Berhad

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