Gas Malaysia Distribution’s Ratings on Islamic Medium Term Notes and Commercial Papers Affirmed by MARC

The Malaysian Rating Corporation (MARC) has affirmed at AAAIS/MARC-1IS its ratings on the Islamic Medium-Term Notes (IMTN) programme and Islamic Commercial Papers (ICP) programme of Gas Malaysia Distribution (GMD), with a Stable Outlook.

Ratings Rationale

A key rating driver is GMD’s stable revenue generation through its distribution of natural gas in Peninsular Malaysia, using its owned natural gas distribution system (NGDS), which provides GMD with a near- monopolistic position. GMD’s rating is further supported by the incentive-based regulation (IBR) framework, through which revenue risk is reduced.

Details

Movement restrictions impacted GMD's natural gas distribution and affected customer demand, lead...