MARC Affirms AAAIS Rating on TNB Western Energy’s MYT 4.0 Billion Sukuk; Outlook Stable

Malaysian Rating Corporation (MARC) has affirmed the AAAIS rating of TNB Western Energy’s (TNB Western) Sukuk of up to MYR 4.0 billion, with a Stable Outlook.

In a recent statement, the ratings agency noted that TNB Western’s rating was equalised to the corporate credit rating of its ultimate parent Tenaga Nasional Berhad (TNB), which stands at AAA/stable. According to MARC, any inability to repay scheduled Sukuk obligations as a result of insufficient operating cash flow, is expected to be covered by TNB under its rolling guarantee.

MARC added that TNB’s pledge to maintain full ownership of TNB Western and wholly-owned subsidiary TNB Manjung Five also reflected in...