RAM Re-Affirms AA2 Rating of Tanjung Bin Power’s MYR 4.5 Billion Sukuk Ijarah

RAM Ratings (RAM) has reaffirmed AA2/Stable rating of MYR 4.5 billion Sukuk Ijarah of Tanjung Bin Power (TBP). The rating is supported by the healthy operating performance of TBP, which results in adequate debt-coverage rates.

The rating is an indication of the strong business profile of TBP, backed by the favourable terms of its Power Purchase Agreement (PPA) with its only off-taker, Tenaga Nasional Berhad (TNB). Nevertheless, similar to other independent power producers (IPP), TBP is also exposed to the inherent industry risks arising through regulations and single-projects.

TBP’s power plant (plant) has been operating within the PPA’s unscheduled outage limit and has...