Launch Partners

Tuesday, January 31, 2023

Launch Partners

MARC Ratings extends negative watch on UiTM Solar Power’s outstanding green SRI Sukuk

MALAYSIA: MARC Ratings has maintained its MARCWatch Negative placement on UiTM Solar Power’s outstanding green SRI Sukuk of RM192.3 million (US$41.06 million), placed since the 28th January 2022. The rating agency in a statement said it is of the view that UiTM Solar would have to partly enforce a RM23 million (US$4.91 million) shareholder’s guarantee from UiTM Holdings if sufficient insurance proceeds are not received to meet the six-month minimum required balance in its finance service reserve account by the 27th October 2022 for the Sukuk obligations of RM16 million (US$3.42 million) in April 2023.

The rating agency also noted that the rating could be downgraded in the event of the expected insurance proceeds not materializing and/or a recurrence in equipment failure that causes plant performance to fall substantially below expectations and affect UiTM Solar’s debt servicing ability.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here