RAM Ratings affirms Solar Management (Seremban)'s AA3/Stable sukuk rating 

RAM Ratings has affirmed the AA3/Stable rating of Solar Management (Seremban) Sdn Bhd's (SMS or the Company) RM260 million ASEAN Green SRI Sukuk (2020/2038) (the Sukuk). The rating reflects the project's stable operating performance and resilient debt metrics, supported by predictable cash flows from the underlying asset. 

SMS's 50 MWac solar photovoltaic plant in Rembau, Negeri Sembilan (the Plant) delivered consistent results in FY Dec 2025, generating a net energy output of 77,989 MWh (FY Dec 2024: 77,130 MWh). This corresponds to 94.5% of the annual declared quantity and exceeded RAM's projection by about 7%, supported by lower unscheduled downtime following effective maintenance. Total downtime fell to 24 hours from 51 hours previously, with no lightning-related incidents recorded during the year (fiscal 2024: 9 incidents). 

The Company's revenue for FY Dec 2025 edged up to RM33.54 mil (+1.1%), underpinned by stable energy generation, despite higher administrative expenses. Pre-tax profit rose to RM6.83 mil from RM6.51 mil a year earlier, as finance costs eased following scheduled sukuk repayments. Debt-servicing metrics remain robust, with a finance service coverage ratio (FSCR), including cash balances, of 2.94 times on the October 2025 distribution date. Cash reserves of RM52.6 mil as at end-January 2026 were more than sufficient to cover sukuk obligations falling due in fiscal 2026, providing a meaningful liquidity buffer. 

RAM's sensitivity analysis indicates minimum and average annual FSCRs of 1.51 times and 2.36 times, respectively, over the Sukuk's remaining tenure, consistent with the AA3 rating. RAM's stress scenario incorporates lower energy output, higher solar panel degradation and increased operating and capital expenditure relative to the Company's revised sukukholder-approved budget. Distributions are assumed to be optimised in line with transaction covenants,