MARC Affirms Jimah East Power MYR 8.98 Billion Sukuk Murabahah with AA-IS Rating; Outlook Stable

Jimah East Power (JEP) has received a rating affirmation of AA-IS on its outstanding MYR 8.98 billion Sukuk Murabahah, with a stable outlook from the Malaysian Rating Corporation (MARC).

Ratings Rationale

The affirmed rating take into account (1) JEP's probable cash flows from its 2x1000MW coal power plant, held under a 25-year power purchase agreement (PPA) with Tenaga Nasional Berhad (TNB), (2) its operational and financial connection to TNB, with TNB holding a 70% indirect stake in JEP, and (3) the credit strength of TNB’s project sponsors, which include The Chugoku Electric Power and Mitsui & Co. MARC notes that risks associated with the plant's performance have also been considered.

The stable outlook is based on JEP’s exp...