RAM Reaffirms A1/Stable Rating of Smart Holdings’ MYR 330 Million Sukuk

RAM Ratings (RAM) has reaffirmed the A1/Stable rating of Projek Smart Holdings’ (Smart Holdings) MYR 330 million Islamic Medium-Term Notes (IMTN) Facility (2015/2032) (Sukuk). Smart Holdings is the sole shareholder of Syarikat Mengurus Air Banjir & Terowong (SMART), which is the concessionaire for the Stormwater Management and Road Tunnel Project (SMART Tunnel).

Ratings Rationale

The reaffirmation is based on RAM’s assessment that Smart Holdings’ credit metrics will continue to support the Sukuk rating, despite volatile near-term traffic flow as a result of the COVID-19 pandemic. The Sukuk’s liquidity and debt coverage indicators are supported by Smart Holdings’ unrated MYR 250 million IMTN Programme (Unrated Sukuk)....