MARC Affirms MARC-1IS/AA-IS Ratings on UEM Sunrise’s MYR 2 Billion ICP/IMTN Programmes; Stable Outlook

Malaysian Rating Corporation (MARC) has affirmed its MARC-1IS/AA-IS ratings on UEM Sunrise’s Islamic Commercial Papers and Islamic Medium-Term Notes programmes (ICP/IMTN-1 and ICP/IMTN-2) with a Stable Outlook. Each ICP/IMTN programme has a limit of MYR 2 billion, with a MYR 500 million sublimit on the ICP issuances.

Malaysian-based UEM Sunrise has a good track record as a property developer, with large unbilled sales as well as a sizeable landbank remaining key drivers of the rating. However, the rating is constrained by the challenging environment for domestic property developers, worsened by the COVID-19 pandemic. According to MARC, UEM Sunrise’s long-term rating benefits from parental support from UEM Group, which is a government-related entity with a robust an...