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RAM Ratings affirms Konsortium ProHAWK’s AA2/Stable IMTN rating
Published on 04 Nov 2025.
RAM Ratings has affirmed the AA2/Stable rating of Konsortium ProHAWK Sdn Bhd’s (ProHAWK) RM900 mil Islamic MTN Programme (2013/2033). The affirmation reflects the ongoing and demonstrated support of its parent, UEM Group Berhad (UEM; rated AA1/Stable by RAM), which remains committed to ensure ProHAWK’s performance is at a level commensurate with its rating. The affirmation action is also supported by stable concession payments from the Ministry of Health (MoH). ProHAWK holds the concession to design, construct, commission and maintain Hospital Tunku Azizah in Kuala Lumpur.
Payment receipts from the MoH have improved since the last review. Despite the stability of these payments, ProHAWK’s projected net cashflows however, have weakened relative to prior year’s expectations. Net operating cash flows are now substantially lower primarily due to higher operating and maintenance expenses, including higher asset management services (AMS) and IT costs contributed by higher minimum wages and expanded scope of sales and service tax. Under RAM’s sensitised projections, ProHAWK will need to extend the Standby Letter of Credit (SBLC) through to 2032 to meet the Finance Service Reserve Account requirements and to maintain the minimum finance service coverage ratio of 1.50 times necessary for its current rating.
To address this potential shortfall, UEM is in the process of extending its Letter of Undertaking to provide liquidity support of up to RM60 mil via SBLCs to PROHAWK until the end of sukuk maturity in 2033. This extension, expected to be finalised soon, reinforces UEM’s commitment of support, which includes cumulative capital injections totalling RM187.9 mil, in addition to its initial investment.
Operationally, ProHAWK’s asset management services contract with UEM Edgenta ended on 30 November 2024. Since then, ProHAWK has in-sourced facilities engineering management, while retaining existing subcontractors for key services. Service delivery has continued smoothly after some initial teething issues. AMS performance has since improved, with deductions trending down towards management’s target of 5% by year end.
Analytical contacts
Darrel Tiang
(603) 2708 8219
darrel@ram.com.my
Thong Mun Wai
(603) 2708 8255
munwai@ram.com.my
Media contact
Sakinah Arifin
(603) 2108 8212
sakinah@ram.com.my
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 2025 by RAM Rating Services Berhad
