MARC: TNB Northern Energy’s MYR 1.415 Billion AAA-IS Sukuk Ratings Affirmed with Stable Outlook

TNB Northern Energy (TNB Northern) has received a ratings affirmation on its MYR 1.415 billion Sukuk at AAA-IS, from Malaysian Rating Corporation (MARC). The ratings have a Stable Outlook. TNB Northern is a funding vehicle of TNB Prai, which owns and operates a 1,071.43 megawatt gas turbine power plant in Penang, under a twenty-one-year power purchase agreement with Tenaga Nasional Berhad (TNB), serving as the off-taker. TNB Prai is a wholly-owned subsidiary of TNB.

The rating affirmation is equal to TNB’s AAA/stable corporate credit rating, which MARC has assigned based on TNB’s financial commitment as an unconditional and irrevocable rolling guarantor to its subsidiaries, given that TNB seeks to maintain f...