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RAM Ratings affirms TRIplc Medical’s Senior Sukuk at AA1
Published on 26 Sep 2025.
RAM Ratings has affirmed the AA1/Stable rating of TRIplc Medical Sdn Bhd’s (the Company) RM639 mil Senior Sukuk Murabahah (2017/2035) (Senior Sukuk).
The affirmation reflects our expectation that TRIplc Medical’s ability to service its financial obligations will remain healthy, supported by a steady inflow of monthly concession payments and the satisfactory maintenance of a teaching hospital and academic complex on Universiti Teknologi MARA’s (UiTM) Puncak Alam campus.
Maintenance performance was solid in 2024 and 6M 2025, with cumulative penalties at RM0.84 mil (or 2.5% of billed maintenance service charges (MSCs)). Deductions incurred, as well as reduced MSCs from UiTM’s partial use of the teaching hospital since its completion, are fully passed on to TRIplc FMS Sdn Bhd, the operations and maintenance services provider.
During the review period, TRIplc Medical’s finance service coverage ratios (FSCRs) exceeded the 1.65 times threshold required to maintain the Senior Sukuk’s AA1 rating, meeting the transaction’s financial covenants. Financial discipline and careful planning of future shareholders’ distributions are expected to preserve TRIplc Medical’s liquidity and credit strength, considering the transaction’s thin liquidity buffers in certain years.
Although shareholder dividends distributions are permitted subject to post-distribution FSCR thresholds, any hefty payouts beyond the RM55.75 mil disbursed over the past three years under our sensitivity scenario could further impair the transaction’s liquidity profile and impact its overall credit metrics. In that regard, the management is mindful of its commitment to preserve the required FSCR profile whilst meeting its dividend commitments, though it may require deferral of some maintenance or construction expenditures at times.
The sukuk rating is moderated by TRIplc Medical and TRIplc FMS’s lack of experience in hospital maintenance, although the satisfactory performance to date provides some comfort. The Company is also exposed to single-project and regulatory risks. Compensation prescribed in TRIplc Medical’s concession agreement with UiTM and the Government of Malaysia offers sukukholders sufficient protection in the event that the concession is terminated due to a default by the Company and/or UiTM.
Analytical contacts
Liew Kar Ling
(603) 2708 8216
karling@ram.com.my
Davinder Kaur Gill
(603) 2708 8220
davinder@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
The credit rating is not a recommendation to purchase, sell or hold a security, in as much 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 2025 by RAM Rating Services Berhad
