Alpha Circle’s Outstanding MYR 140 Million Senior Sukuk Musharakah Rating Lowered to BBBIS from AIS 

Malaysian Rating Corp (MARC) has downgraded its ratings on Alpha Circle’s outstanding MYR 140 million Senior Sukuk Musharakah to BBBIS from AIS and MYR 55 million Junior Sukuk Musharakah to BBIS from BBBIS.

Ratings Rationale

These downgrades reflect heightened concerns surrounding Alpha Circle’s capacity to meet its remaining Sukuk repayments, as its cash flow has been significantly adversely impacted by operational disruption in foreign worker permit issuances and renewals since 1Q 2020 amidst various restrictions owing to COVID-19. It has also faced payment delays, which have compounded its tight liquidity profile. One of the options that Alpha Circle is pursuing is the restructuring of its Sukuk; it is...