MARC Assigns Preliminary MARC-1IS/AAIS Ratings to Cellco’s Proposed MYR 520 Million Sukuk Ijarah Issuance

Malaysian Rating Corporation has assigned preliminary MARC-1IS/AAIS ratings to Cellco Capital’s (Cellco) proposed MYR 520 million issuance under its Islamic Commercial Papers/Islamic Medium-Term Notes (Sukuk Ijarah Programme), with a combined limit of up to MYR 1 billion. MARC has assigned the ratings with a Stable Outlook.

Cellco is a special-purpose entity that has been set up to undertake the Sukuk Ijarah Programme for its parent Stealth Solutions (Stealth), Malaysia-based independent telecommunication (telco) infrastructure provider. According to MARC, the proceeds of the issuance will be used by Cellco to purchase 531 completed telco towers from Stealth and lease the towers back to the parent company.

The ratings reflect Stealth’s robust cash flow wh...