RAM Reaffirms AA1/Stable Rating of UniTapah’s MYR 600 Million Sukuk Murabahah

RAM Ratings (RAM) has reaffirmed the AA1/Stable rating of UniTapah’s Sukuk Murabahah of up to MYR 600 million (2014/2035). UniTapah is the concessionaire for the development and maintenance of University Teknology MARA’s (UiTM) campus in Perak under a 23-year concession agreement with the Government of Malaysia.

Ratings Rationale

The reaffirmation is based on UniTapah’s steady cashflow and robust debt service coverage. Under the concession agreement, UniTapah receives monthly payments made up of availability charges and maintenance charges, with maintenance undertaken externally through Everfine FMS, a subsidiary of GFM Services. As UniTapah’s maintenance track record has been commendable in the recent past, this has led to min...