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Tuesday, 12 April 2016

Moody’s assigns (P)A3 rating to Malaysia Sukuk Global’s issuance

KUALA LUMPUR: Moody’s Investors Service has assigned a provisional (P)A3 rating to the US dollar-denominated trust certificates (sukuk) issued by Malaysia Sukuk Global Bhd.

In a statement on Monday, Moody’s said the rating is assigned to the sukuk as the sukuk certificate holders would effectively be exposed to the Government’s senior unsecured credit risk, and not be exposed to the risk of performance of the portfolio assets relating to the certificates.

It said the sukuk also would not have any preferential claim or recourse over the trust assets and the certificate holders could not sell or dispose of any trust assets except as expressly provided for under the transaction documents.

The sukuk certificate holders only have rights against the Government, ranking equally with other senior unsecured obligations as provided in the transaction documents, Moody’s said. 

“Legal opinions have also confirmed legal, binding and enforceable obligations for the Government,” it added.

The (P)A3 rating is at the same level as the Government’s long-term local-currency and foreign-currency issuer ratings.

Moody’s said the provisional status of the rating would be removed upon completion of the sukuk issuance and its satisfactory review of the final terms and conditions and legal opinions.

Moody’s also noted that its sukuk rating did not express an opinion on the structure’s compliance with syariah law. 

(The Star Online / 11 April 2016)
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