RAM Ratings reaffirms AAA rating of CJ Capital's sukuk

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1. IB Press Release Service Published on :​ ​IslamicBanker.com Publications: ​https://www.islamicbanker.com/publications RAM Ratings reaffirms AAA rating of CJ Capital's sukuk 9 April 2018 RAM Ratings has reaffirmed the AAA/Stable rating of CJ Capital Sdn Bhd's (the Company) RM114 million Sukuk Murabahah (2010/2020) (the Sukuk). The rating reflects the transaction's highly predictable cashflow, the strength and legality of its key governing documents, its low level of counterparty risk, and the tight structural features and restrictive covenants of the facility. During the review period, the annuity payment from CJ Capital's counterparty the Johor State Government (the State) - was paid one month ahead of the scheduled date. This is unlike the previous year, when the annuity payment from the State was delayed for two weeks amid the unforeseen, one-off implementation of a new IT system and a change in the department issuing annuity payments. Following the completion of both in the same period, RAM opines that the recurrence of such a delay is unlikely. A 5-month gap between the scheduled dates of annuity payments and the dates of principal and profit payments of the Sukuk provides the Company with an adequate time buffer. Wholly owned by Cahaya Jauhar Sdn Bhd (CJSB), CJ Capital had been set up as a funding conduit to raise the Sukuk. CJSB, a 60:40 joint venture between UEM Land Berhad and the State via Permodalan Darul Ta'zim Sdn Bhd, has been awarded the contract for the development and maintenance of Kota Iskandar (the Project), the State's new administrative centre in Iskandar Puteri. In return for the construction and execution of variation orders for the first phase of the Project, CJSB is entitled to receive RM15 million in annuity payments from JSSI for 10 years. Organisation Name: News Type: RAM Rating Services Berhad RATING ANNOUNCEMENT Source: BNM Announcements Media Contact Padthma Subbiah (603) 7628 1162
2. IB Press Release Service Published on :​ ​IslamicBanker.com Publications: ​https://www.islamicbanker.com/publications padthma@ram.com.my Disclaimer: The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security's market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations. RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings' credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications. Similarly, the disclaimers above also apply to RAM Ratings' credit-related analysis and commentaries, where relevant.