MARC Affirms AAis Rating on Kimanis Power’s MYR 1.16 Billion Sukuk with a Stable Outlook

Malaysian Rating Corporation (MARC) has affirmed its AAis rating of Kimanis Power’s (KP) MYR 1.16 billion Sukuk Programme with a Stable Outlook. KP owns and operates a 285-megawatt combined-cycle gas-fired power plant in Kimanis Bay, Sabah.

The affirmed rating reflects the favourable terms of KP’s 21-year power purchase agreement (PPA) with the off-taker Sabah Electricity (SE), an 83.0%-owned subsidiary of Tenaga Nasional Berhad (AAA/Stable), which absorbs the demand risk, according to MARC.

MARC noted that KP’s rating incorporates its power plant’s operating performance which has continued to meet PPA requirements in relation to the cumulative unplanned outag...