Moody’s Assigns A3 Rating to Malaysia’s Proposed USD-Denominated International Sovereign Sukuk

Moody’s Investors Service (Moody’s) has assigned an A3 senior unsecured rating to the Government of Malaysia’s proposed USD-denominated Sukuk certificates with maturities of 10 and 30 years to be issued by special purpose vehicle, Malaysia Wakala Sukuk Berhad.

Ratings Rationale

The rating of the Sukuk is on par as the issuer ratings of the Government of Malaysia as Sukuk holders will be exposed to the Government’s senior unsecured credit risk, will not be exposed to performance risk of the portfolio assets, will not have preferential claim or recourse over trust assets and will only have rights against the Government, ranking pari passu with other senior unsecured obligations.

Malaysia’s A3 rating reflects its m...