04-06-2025
- Business
- New Straits Times
MARC reaffirms AAA rating on Ranhill Sabah Energy sukuk
KUALA LUMPUR: MARC Ratings has reaffirmed its AAAIS(bg) rating on Ranhill Sabah Energy II Sdn Bhd (RSEII) RM250 million Islamic Medium-Term Notes Programme, maintaining a stable outlook.
In a statement, MARC said the rating reflects the unconditional and irrevocable guarantee provided by Bank Pembangunan Malaysia Bhd (BPMB), which is itself rated AAA/Stable by the agency.
"This rating continues to reflect strong liquidity and stable cash flow coverage, with sukukholder interests well protected by BPMB's guarantee," MARC said.
RSEII owns and operates the 190-megawatt combined-cycle gas turbine Rugading Power Station in Sabah under a 21-year power purchase agreement (PPA) with Sabah Electricity Sdn Bhd, a subsidiary of Tenaga Nasional Bhd.
MARC noted that the plant delivered strong performance in 2024, keeping its unplanned outage rate below the 4.0 per cent limit set by the PPA, which resulted in a full capacity payment of RM69.1 million.
The plant also met heat rate efficiency targets, enabling full cost pass-through to the offtaker.
Total energy payments for the year amounted to RM131.9 million.
Operating profit improved to RM23.5 million in 2024, up from RM18.4 million the year before, which had been impacted by major maintenance work.
RSEII's cash balance stood at RM85.6 million as of end-March 2025, sufficient to cover the RM56.9 million due in principal and profit payments by June 17.
Based on base case cash flow projections, RSEII's average and minimum finance service coverage ratios are forecasted at two times and 1.9 times through 2029, respectively.
