Expected Default of Cendana Sejati Over its Senior Sukuk Obligations

RAM Ratings forecasts a default on MYR 10.28 million (combined profit and principal payment) of Cendana Sejati (CS)’s Senior Sukuk, due on the 19th of February 2021. Under CS’s MYR 360 million Senior Sukuk Murabahah Medium Term Notes Programme (Senior Sukuk Programme), MYR 70 million remains outstanding. The programme is currently rated C3/Negative.

According to the latest reports, only around 3% scheduled monthly instalments were collected from the portfolio’s consumer receivables – i.e. through salary deductions of the civil servants who borrowed the debt. As at the 25th of January 2021, CS had insufficient funds from the collections (up to December 2020, recently transferred by Coshare Holdings) and other available cash balances (of MYR 258,458, in t...