MARC Ratings has affirmed its AAAIS rating on Putrajaya Bina Sdn Bhd's (PBSB) RM1.58 billion Islamic Medium-Term Notes (Sukuk Wakalah) Programme. The rating outlook is stable.

The rating affirmation is mainly premised on the sufficiency of the periodic payment streams from the Malaysian government in the form of availability charges (AC) to meet the financial obligations under the sukuk Wakalah Programme. The credit strength of the government (AAA/Stable) eliminates obligor credit risk. PBSB's status as a wholly-owned subsidiary of government-related entity Putrajaya Holdings Sdn Bhd(AAA/Stable), the master developer of the federal government's administrative capital in Putrajaya, underpins the rating. 

PBSB completed the construction of nine blocks of government office buildings and one block of shared facilities in Parcel F, Precinct 1, Putrajaya, under a government concession agreement in April 2019. It receives AC payments of RM215.6 million p.a. under the 25-year asset management phase of the concession agreement. PBSB receives maintenance charges of RM69.2 million p.a. subject to meeting specific key performance indicators. The financial service cover ratio would stand at a healthy 2.59x as at  end-2024 based on the projected cash flow against a covenant of 1.50x.

Contacts:
Fatin Sadiqah Saberam, +603-2717 2934/ [email protected]
Yazmin Abdul Aziz, +603-2717 2948/ [email protected]

August 16, 2024

[This announcement is available on MARC's corporate website at www.marc.com.my]
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This communication is provided by Malaysian Rating Corporation Berhad and any of its subsidiaries or affiliates (''MARC'') based onthe information, reasonably believed by MARC to be accurate and reliable to the greatest extent, derived from publicly available sources or provided by the rated entity or its agents. MARC, however, has not independently verified the source of such information and makes no representation as to the accuracy, completeness