KUALA LUMPUR: RAM Ratings has given the AAA/Stable/P1 ratings to Telekom Malaysia’s (TM) proposed Sukuk Wakalah Programmes with a nominal value of up to RM3bil.
According to RAM, a plus factor in its assessment was the high likelihood of “extraordinary government support” for TM, given the Malaysian Government’s 68.6% share in the group, ownership of a special rights redeemable preference share and 33% representation on the board.
It said TM’s ratings were also anchored by its dominant position in the domestic fixed-line telephony sector, as well as its strong position in the fixed-broadband market with 89% of subscriber base.
“The group’s ratings are also supported by its healthy financial profile, which is characterised by stable earnings, a steady cash flow-generating ability and moderate balance sheet.
TM’s proposed Sukuk will comprise the Islamic Commercial Papers Programme (commencing in 2013 and maturing in 2020) and the Islamic Medium-Term Notes Programme (2013/2033).