MARC: DRB-HICOM’s Sukuk Ratings Affirmed, Outlook Revised to Stable from Positive

August 10, 2020 | Updated at August 11, 2020

DRB-HICOM’s A+IS rating on its Sukuk Programme of up to MYR 3.5 billion, as well as the A-IS on the Perpetual Sukuk Musharakah Programme (Perpetual Sukuk) of up to MYR 2.0 billion, have been affirmed by the Malaysian Rating Corporation (MARC). MARC has also revised the ratings Outlook to Stable from Positive.

The ratings affirmation is backed by DRB-HICOM’s ability to better tackle the impacts of COVID-19, given its diverse business segments, whilst its sound liquidity position is anticipated to support its short-term financial obligations and funding requirements. In addition, MARC notes that DRB-HICOM’s moderate level of leverage allows for some borrowings if required.