MARC: SAJ Capital’s MYR 650 Million Sukuk Murabahah Rating Affirmed at AA-IS

Malaysian Rating Corporation (MARC) has affirmed SAJ Capital (SAJ Capital)’s AA-IS rating of up to MYR 650 million with a Stable Outlook. SAJ Capital, which was incorporated for Sukuk issuance purposes only, is fully owned by Ranhill Capital, which has an 80% interest in Ranhill SAJ (RSAJ), the only water treatment operator and distributor in Johor, Malaysia.

According to the IslamicMarkets Sukuk Monitor, SAJ Capital is reliant on dividends from RSAJ to repay its Sukuk; therefore its affirmed rating relies on the credit strength of RSAJ. RSAJ paid MYR 130.5 million in dividends to SAJ Capital in 2019, which was adequate to cover the company’s first Sukuk principal payment of MYR 40 million in January 2020. <...