RAM Assigns PKPP’s Proposed MYR 650 Million Sukuk Wakalah Programme at AA3(s); Stable Outlook

RAM Ratings (RAM) has assigned the MYR 650 million Sukuk Wakalah Programme (2020/2050) proposed by Perbadanan Kemajuan Pertanian Negeri Pahang’s (PKPP) a preliminary rating of AA3(s), with a Stable Outlook.

PKPP is an oil palm plantation agency, with around 42,000 hectares (ha) of planted area, tasked with ensuring the developing of the agricultural sector in Pahang, Malaysia. RAM’s preliminary ratings are based on PKPP’s strong capitalisation, liquidity and leverage, coupled with its State-supported role in Penang’s agricultural development.

According to RAM, PKPP has sustained low Fresh Fruit Basket (FFB) and Crude Palm Oil yields and operating profits in t...