MARC: Malaysia Steel Work’s MYR 130 Million Sukuk Ijarah’s Rating Reaffirmed at AAAIS, Outlook Stable

Malaysia Steel Work (Masteel)’s MYR 130 million Sukuk Ijarah Programme has had its AAAIS rating affirmed by Malaysian Rating Corporation (MARC), with a Stable Outlook.

This rating affirmation is reflective of the credit strength of Danajamin Nasional (Danajamin), providing an irrevocable and unconditional financial guarantee insurance on the Sukuk Ijarah Programme. Danajamin carries an insurer financial strength rating AAA/Stable, as well as a long-term counterparty credit rating of AAA/stable from MARC.

Masteel’s standalone credit profile has weakened in recent years, due to unfavourable steel prices resulting from overcapacity in the domestic steel production market. T...