MARC RATINGS AFFIRMS RATING OF AA-IS ON MMC'S SUKUK MURABAHAH PROGRAMME

MARC Ratings has affirmed its rating of AA-IS on MMC Corporation Berhad's (MMC) Sukuk Murabahah Programme of up to RM3.5 billion. The rating outlook is stable. As of 28 November 2025, the Sukuk Murabahah has an outstanding of RM2.1 billion.

MMC's strong competitive position and longstanding track record across key sectors of the economy, namely ports and logistics, engineering, and energy and utilities, remain the primary rating drivers. The rating is moderated by the exposure of its port operations to fluctuations in global trade flows, as well as the potential increase in borrowings at the port operating subsidiaries, which could reduce residual cash flow buffers and, hence, dividend upstreaming capacity to the holding company.

The port and logistics division remains the group's largest earnings contributor. With a combined annual maximum container handling capacity of 24.1 million twenty-foot equivalent units (TEUs) as at end-5M2025, MMC retains its position as the largest port operator in Malaysia, ranked among the top 10 globally in terms of handling capacity. Its domestic ports, strategically located along the Strait of Malacca, operate under long-term concessions through 2055, providing strong visibility of sizeable future cash flows. The ports benefit from MMC's ongoing investment in infrastructure and digitalisation, which enhances operational efficiency and capacity. During 5M2025, MMC's ports handled a combined 8.1 million TEUs of container cargo and 14.7 million FWT of conventional cargo. Its large scale, diversified cargo base, and strategic role in national and regional trade corridors underpin the group's resilient and defensive earnings profile.

The engineering division replenished its order book after being awarded the RM1.5 billion Phase 1 paddy cultivation infrastructure project in Kedah by Muda Agricultural Development Authority (MADA), bringing total outstanding6