RAM Ratings has affirmed the AAA/Stable rating of Manjung Island Energy Berhad's (MIEB) RM3.86 bil Islamic Securities (2011/2030) (Series 1) and the enhanced AAA(s)/Stable rating of its RM990 mil Islamic Securities (2011/2031) (Series 2).

MIEB is a special-purpose financing vehicle for the construction of GF2, located adjacent to TNBJ's 2,070 MW Sultan Azlan Shah power plant in Perak (GF1) (collectively, the Plants). As MIEB's debt servicing relies solely on cash flows from TNBJ under a Purchase Undertaking, RAM evaluates both entities on an aggregate credit basis.

The affirmation of the Series 1 rating reflects RAM's expectation that TNB Janamanjung Sdn Bhd (TNBJ or the Company) will maintain a robust debt servicing profile  throughout the tenure of the series. Our view is supported by the successful recovery of TNBJ's Generating Facility 2 (GF2), following a near year-long outage caused by intermediate-pressure steam turbine damage in 2024. The enhanced rating for Series 2 is supported by an irrevocable and unconditional corporate guarantee from Tenaga Nasional Berhad (TNB, sukuk rated AAA/Stable by RAM), TNBJ's parent.

Operational and financial performance at the Plants has improved, evidenced by lower available capacity payment (ACP) losses in 7M FY Dec 2025. GF1's improved performance is attributable to rectification work and preventive measures addressing persistent boiler tube problems, among other challenges. Following TNB approval for a scheduled outage after the steam turbine incident, TNBJ received full ACPs for GF2, offset by an availability target (AT) penalty of RM383 mil for 2028. Despite initial operational challenges after GF2's restart in early November 2024, associated ACP losses were relatively minor. 

Given TNBJ's historical performance volatility, RAM remains cautious of the Plants' long-term operational stability. Our sensitivity analysis, however, indicates that TNBJ will sustain superior post-distribution finance service coverage