MARC Affirms AA-IS Rating on Cerah Sama’s MYR 420 Million Sukuk; Stable Outlook

Malaysian Rating Corporation (MARC) has affirmed its AA-IS rating on Cerah Sama’s MYR 420 million Sukuk, with a Stable Outlook.

Cerah Sama, is a Malaysian-based investment holding company of Grand Saga, which is the concessionaire of the 11.5 km Cheras-Kajang Highway.

MARC’s rating affirmation is driven by Cerah Sama’s strong cash flows and stable top-line, robust cash reserves, as well as the flexible repayment structure of the Sukuk. However, the rating is moderated by Cerah Sama’s leveraged capital structure, which has a debt-to-equity ratio of 4.1x as at the first half of 2020.

The Stable Outlook on the Sukuk rating reflects MARC’s assessment that Cerah Sama will be able to provide steady cash flow and maintain healthy cash...