MALAYSIA: RAM Ratings has placed the respective ‘AA3/Negative’ and ‘A2/Negative’ ratings on Telekosang Hydro One (TH1)’s RM470 million (US$103.07 million) ASEAN Green SRI Sukuk under the Shariah principle of Wakalah Bi stithmar (2019/2037) and RM120 million (US$26.32 million) ASEAN Green Junior Bonds (2019/2039) on Rating Watch with a negative outlook, a rating note read.
The rating action highlights RAM Ratings’s concerns over the issuer’s deteriorating liquidity position and potential breaches in meeting the covenanted minimum finance service reserve account balances over the next few years.