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RAM Ratings affirms Solar Management (Seremban)’s AA3/Stable sukuk rating
Published on 31 Mar 2026.
RAM Ratings has affirmed the AA3/Stable rating of Solar Management (Seremban) Sdn Bhd’s (SMS or the Company) RM260 million ASEAN Green SRI Sukuk (2020/2038) (the Sukuk). The rating reflects the project’s stable operating performance and resilient debt metrics, supported by predictable cash flows from the underlying asset.
SMS’s 50 MWac solar photovoltaic plant in Rembau, Negeri Sembilan (the Plant) delivered consistent results in FY Dec 2025, generating a net energy output of 77,989 MWh (FY Dec 2024: 77,130 MWh). This corresponds to 94.5% of the annual declared quantity and exceeded RAM’s projection by about 7%, supported by lower unscheduled downtime following effective maintenance. Total downtime fell to 24 hours from 51 hours previously, with no lightning-related incidents recorded during the year (fiscal 2024: 9 incidents).
The Company's revenue for FY Dec 2025 edged up to RM33.54 mil (+1.1%), underpinned by stable energy generation, despite higher administrative expenses. Pre-tax profit rose to RM6.83 mil from RM6.51 mil a year earlier, as finance costs eased following scheduled sukuk repayments. Debt-servicing metrics remain robust, with a finance service coverage ratio (FSCR), including cash balances, of 2.94 times on the October 2025 distribution date. Cash reserves of RM52.6 mil as at end-January 2026 were more than sufficient to cover sukuk obligations falling due in fiscal 2026, providing a meaningful liquidity buffer.
RAM's sensitivity analysis indicates minimum and average annual FSCRs of 1.51 times and 2.36 times, respectively, over the Sukuk's remaining tenure, consistent with the AA3 rating. RAM’s stress scenario incorporates lower energy output, higher solar panel degradation and increased operating and capital expenditure relative to the Company’s revised sukukholder-approved budget. Distributions are assumed to be optimised in line with transaction covenants, including the planned repayment of RM3.75 mil in shareholder advances in October 2026.
While the project is exposed to the long-term variability of solar irradiance and single project risks inherent to solar assets, these are partly mitigated by insurance coverage and the Plant’s modular configuration and scale, which support operational resilience and facilitate targeted replacement or rectification works.
Analytical contacts
Lai Jing Wei
(603) 2708 8239
jingwei@ram.com.my
Chong Van Nee, CFA
(603) 2708 8210
vannee@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, 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
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