Find A Rating 
PRESS RELEASES
RAM Ratings affirms AAA rating of Starbright Capital’s water receivables-backed notes
Published on 07 Oct 2026.
RAM Ratings has affirmed the AAA/Stable rating of the RM665 million Medium-Term Notes (MTN) issued under Starbright Capital Berhad’s (Starbright or the Issuer) RM700 million Asset-Backed Medium-Term Notes Facility.
The affirmation reflects the credit strength of Pengurusan Air Selangor Sdn Bhd (click here), which provides counterparty support for payment obligations under the transaction. The notes are backed by outstanding receivables arising from the Termination and Settlement Agreement (TSA) between Air Selangor, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) and Sungai Harmoni Sdn Bhd. The receivables are amounts due from SPLASH to Sungai Harmoni for the operations and maintenance of Phase 1 of the Sungai Selangor Water Treatment Plant.
As a special-purpose funding vehicle, Starbright relies on fixed annual payments from SPLASH in accordance with the TSA to service the MTN. Under the transaction structure, Air Selangor – SPLASH’s parent company – has committed to make good any payment shortfall and default interest, as necessary.
Air Selangor is strategically important as Malaysia’s largest water utility company and the sole water treatment and distribution licence holder for Selangor, Kuala Lumpur and Putrajaya. We view state government support for Air Selangor as highly likely if required, closely aligning the utility’s credit strength with the state’s financial resilience. Selangor’s State Implicit Strength (SIS) is assessed to be ‘superior’, the highest category in RAM’s SIS Framework.
To date, Starbright has received all scheduled annual instalments on time. As of end-April 2026, the transaction held RM2.9 mil in cash, which along with RM238.84 mil of remaining receivables, exceeded the RM234.05 mil outstanding MTN balance. Transaction expenses stayed in line with expectations.
After all transaction obligations have been met, any surplus funds may be used to reduce the deferred purchase price of the receivables.
Analytical contacts
Zahra Zarir
(603) 2708 8288
zahra@ram.com.my
Tan Han Nee
(603) 2708 8322
hannee@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
