RAM Reaffirms Ratings of Manjung Island Energy’s Series 1 and Series 2 Sukuk

RAM Ratings (RAM) has reaffirmed Manjung Island Energy Berhad’s (MIEB) MYR 3.86 billion Islamic Securities (2011/2030) (Series 1) rating at AAA/Stable, and its MYR 990 million Islamic Securities (2011/2031) (Series 2) enhanced AAA(s)/Stable rating.

Ratings Rationale

Series 1 reaffirmed rating is based on RAM’s expectation that the debt coverage for Series 1 will remain robust despite operational issues that TNB Janamanjung (TNBJ) has faced. Series 2 reaffirmed enhanced rating reflects the unconditional and binding guarantee from Tenaga Nasional Berhad (TNB, rated AAA/Stable by RAM), which is the ultimate parent of TNBJ.

Company Background

MIEB is a Malaysian based trust-owned special purpose vehicle...