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RAM Ratings affirms Kimanis Power
Published on 15 May 2026.
RAM Ratings has affirmed the AAA/Stable rating on Kimanis Power Sdn Bhd’s (KPSB or the Company) Sukuk Wakalah Facility of up to RM300 mil (2025/2035) (the Sukuk), reflecting the Company’s strong debt coverage profile, supported by stable cash flows from its 285 MW combined-cycle gas turbine power plant in Kimanis, Sabah.
The AAA rating also incorporates uplift for the ‘strong’ likelihood of extraordinary support from PETRONAS Gas Berhad (PGB), KPSB’s majority shareholder. We view the plant as strategically important, as it is Sabah’s largest electricity generator and represents a key extension of PGB’s power generation portfolio.
Operating performance remained robust from January 2025 to February 2026, with high plant availability and compliance with key performance indicators. While outage hours increased due to isolated equipment-related issues, these were promptly resolved and did not result in penalties or slippage in heat rate requirements. KPSB also continued to be eligible for fuel cost recovery from offtaker, Sabah Electricity Sdn Bhd, consistent with contractual pass-through mechanisms.
We expect the plant to remain operationally sound in Contract Year Block 5 (2026–2028), backed by an experienced in-house operations and maintenance team, PETRONAS's technical oversight and a long-term services agreement with General Electric. Operational interdependencies with services provided to sister company, Kimanis Power (Dua) Sdn Bhd are mitigated by contractual arrangements, defined scope of shared services and KPSB’s internal capabilities. Nonetheless, sustained resource sharing could become a constraint if it increases materially without commensurate strengthening of staffing and controls, although we assess this risk to be manageable.
Liquidity remains strong subsequent to a RM100 mil dividend distribution in FY Dec 2025, with RM250.3 mil in cash and permitted investments comfortably exceeding upcoming debt obligations of RM9.5 mil. Our stress-tested cash flow projections continue to support the transaction’s credit metrics, with minimum and average post-distribution finance service coverage ratios of 1.66 times and 3.90 times, respectively, over the remaining tenure of the Sukuk.
Key risks remain limited to single-project exposure and evolving regulatory environment in Sabah. We assess near-term regulatory risk as low, given the state’s continued policy focus on energy security and the plant’s role in system stability. The proposed carbon tax has been deferred; while it reduces immediate cost pressures, it introduces uncertainty pending further policy clarity with respect to the timing and design of any future levy and to the extent to which such costs would be recoverable under the power purchase framework.
Analytical contacts
Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my
L Nurisya Abdullah
(603) 2708 8238
nurisya@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
© Copyright 2026 by RAM Rating Services Berhad
