RAM Rating Services Bhd has assigned a ‘AAA/Stable’ rating to Tenaga Nasional Bhd’s (TNB) proposed Islamic medium-term notes Sukuk Wakalah Programme of up to RM5 billion in nominal value (2017/2067).
In a statement yesterday, RAM said the rating was premised on the group’s strategic position as the national utility company, coupled with its solid business and healthy financial profile.
“The proceeds from the sukuk issuance would be used to finance TNB’s capital expenditure, investments and working capital requirements,” it said.
RAM said TNB has a near-monopoly in across Peninsular Malaysia and Sabah. TNB controlled 56% of the peninsula’s total installed capacity as at end-February 2017 and this is expected to increase to 57% by 2020, it said. — Bernama