MARC Affirms Tropicana’s MYR 1.5 Billion Sukuk Wakalah Programme Rating at A+IS; Stable Outlook

Malaysian Rating Corporation (MARC) has affirmed Tropicana Corporation’s (Tropicana) MYR 1.5 billion Islamic Medium-Term Notes Programme (Sukuk Wakalah) A+IS rating with a Stable Outlook.

Ratings Rationale

The key rating drivers are Tropicana’s long standing position in the property industry in Malaysia and its moderate financial risks. Challenging property market conditions have impacted the group’s sales performance, which is the main moderating factor of the rating.

Details

Tropicana achieved a 53.2% overall take-up rate for ongoing projects at the end of 2020, which was an increase from 43.1% at the end of 2019. In the nine months ending 2020 (9M2020), Tropicana’s revenue declined by 7....