Chellam Plantation’s AAA (fg) Sukuk Rating Reaffirmed: RAM Ratings

RAM Ratings (RAM) has reaffirmed Chellam Plantation (CP)’s AAA (fg)/Stable rating on the MYR 150 million 10-year tranche (2016/2026), under CP’s MYR 300 million Guaranteed Sukuk Murabahah Programme (2016/2033).

This rating is based on the unconditional and irrevocable guarantee extended by Danajamin Nasional Berhad, which carries a rating of AAA/Stable/P1.

CP is an investment-holding company, whose subsidiaries are directly involved in oil palm cultivation, as well as the milling of palm oil. CP’s stand-alone credit file is constrained by its relatively small size, with a planted area of 13,799 hectares.

RAM expects CP to res...