RAM Ratings Reaffirms SPR’s MYR 580 Million Sukuk’s Rating at AA3 With a Stable Outlook

Independent power producer, SPR Energy (SPR) saw the AA3/Stable rating on its MYR 580 million Sukuk Ijarah program being reaffirmed by RAM Ratings (RAM). RAM reported that the rating affirmation on this Sukuk reflects the much-improved operational performance of SPR, which in turn has improved SPR’s debt-servicing ability.

According to RAM, SPR’s finance service coverage ratio (FSCR) has limited headroom for its current rating of the Sukuk, due to the problems faced by the company in its initial four years of operation (2014-2018). According to a stressed scenario, SPR is expected to have no residual cash flow to distribute to its shareholders.

RAM also noted that SPR&rs...