MARC Affirms JEP’s MYR 8.98 Billion Sukuk with an AA-IS Rating; Outlook Stable

Jimah East Power (JEP), the Malaysian-based power generation company saw its MYR 8.98 billion Sukuk Murabahah’s AA-IS rating affirmed by Malaysian Rating Corporation (MARC), with its Outlook Stable.   

The affirmation is driven by the expectation of predictable cash flows from the power plant, a manageable repayment profile that matches JEP's availability-based revenue structure under the 25-year power purchase agreement (PPA) with Tenaga Nasional Berhad (TNB), operational and financial relationship with TNB (TNB owns 70% of JEP), as well as the credit strength of its project sponsors.

However, these strengths of JEP have been moderated by the risks associated with the relativ...