MARC: Kapar Energy Ventures’ MYR 2 Billion Sukuk Ijarah Rating Affirmed at AA+IS

Malaysian Rating Corporation (MARC) has affirmed its rating of Kapar Energy Ventures (KEV)’ MYR 2 billion Ijarah Sukuk at AA+IS. MARC has also revised the rating Outlook to Negative from Stable. KEV owns and operates the Kapar Power Station which has a capacity of 2,200 megawatts.

The rating affirmation reflects MARC’s expectation of a very high probability of parental support for KEV from Tenaga Nasional Berhad (TNB) (AAA/Stable), where TNB owns a 60% stake in KEV. This anticipated support also warrants the affirmed rating being two notches higher than KEV’s stand-alone rating of AA-.

The Outlook revision to Negative reflects a continued weakening in the operatin...