RAM Ratings assigns final ratings to Sunway REIT’s MTN Programme under SUNREIT Bond Berhad

Published on 23 May 2024.

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RAM Ratings has assigned final ratings of AA1(s)/Stable and AA2(s)/Stable to the respective secured and unsecured medium-term notes (MTNs) under SUNREIT Bond Berhad’s (the Issuer, formerly SUNREIT Unrated Bond Berhad) previously unrated RM10.0 bil MTN Programme (2012/2047). The suffix (s) to the issue ratings indicates that the Issuer, a wholly owned non-operating vehicle of Sunway Real Estate Investment Trust (Sunway REIT or the REIT), relies on inter-company payments from the REIT to meet its financial obligations in respect of the MTN Programme. 

The secured MTNs are rated one notch above Sunway REIT’s long-term corporate credit rating (CCR) of AA2 based on RAM’s rating methodology for well-secured debt, reflecting the strong likelihood of recovery in the event of default, through the liquidation of properties secured against the MTN. Existing and future secured MTNs are subject to loan-to-value covenants of up to 50% and 60%, respectively, under the programme terms, which will provide a minimum security cover of at least 1.67 times. The rating of the unsecured MTNs is equated to the REIT’s long-term CCR.

In assigning the final ratings, we have considered the relevant transaction terms and documents. We find these to be largely in line with our expectations when we assigned the preliminary ratings, published on 5 April 2024 (click here). Please refer to our final rating rationale for details on the assigned ratings. 


Analytical contacts
Liew Kar Ling
(603) 3385 2586

Tan Han Nee
(603) 3385 2529

Media contact
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 2024 by RAM Rating Services Berhad

Rating Rationale

Ratings on SunREIT Bond Berhad