MARC: Southern Power Generation’s MYR 4.0 Billion Sukuk Wakalah Rating Affirmed at AA-IS

Malaysian Rating Corporation (MARC) has affirmed its AA-IS rating on Southern Power Generation (SPG)’s MYR 4.0 billion Sukuk Wakalah programme, with a Stable Outlook. SPG is a 51:49 joint venture between Tenaga Nasional (TN) and SIPP Energy (SE) and was established to develop a 2x720 megawatt combined-cycle gas-fired power plant.

With 99.7% of the project completed as of the 25th of April 2020, commissioning activities have been affected by the government-imposed movement control order (MCO) in March 2020. Commissioning activities are set to resume upon the easing of government restrictions.

The affirmed rating recognises MARC’s expectation that the delay in the origina...