RAM Ratings: UMW Holdings’ Islamic Medium-Term Notes and Sukuk Ratings Reaffirmed; Outlook Stable

UMW Holdings (UMW)’s MYR 2 billion Islamic Medium-Term Notes Programme (2013/2028) has been reaffirmed at AA2 by RAM Ratings (RAM), along with the reaffirmation of the A1 rating on its MYR 2 billion Perpetual Sukuk Programme. The Outlook is Stable on both ratings.

Based on RAM, the UMW’s Perpetual Sukuk Programme is rated two notches lower than UMW’s long-term corporate credit rating, reflecting the risk of deferrable profit distributions, as well as the extremely subordinated rights of Sukukholders to any claims, in the event of insolvency.

RAM’s ratings reaffirmation is based on the anticipated recovery of UMW’s credit metrics from December 2021 onwar...