RAM Ratings affirms AAA(s) sukuk ratings of Khazanah's funding conduits

RAM Ratings has affirmed the AAA(s)/Stable ratings of Islamic securities programmes established by funding conduits of Khazanah Nasional Berhad, reflecting Khazanah's critical public policy role as Malaysia's sovereign wealth fund and its close linkage with the Federal Government. The suffix "(s)" to its issue ratings denotes rating enhancement arising from Khazanah's contractual undertaking to cover any shortfall in profit distributions and capital repayments under the programmes.

Issuer                           Facility                                   Rating/Outlook
Rantau Abang            RM7.0 bil Islamic Medium-Term Notes (MTN)Sukuk             AAA(s)/Stable
Capital Berhad         Musyarakah Programme (2006/2041) 
Danga Capital Berhad RM10.0 bil Islamic Securities Programme (2009/2044)    AAA(s)/Stable
Ihsan Sukuk Berhad RM1.0 bil Islamic MTN Sukuk Ihsan Programme (2015/2040)    AAA(s)/Stable
Danum Capital Berhad RM20.0 bil Islamic MTN Sukuk Danum Programme (2019/2069)   AAA(s)/Stable

The rating action is anchored on Khazanah's instrumental function in preserving and enhancing national assets, catalysing strategic investments aligned to national economic development policies, and supporting long term socio-economic objectives. These institutional linkages underpin our expectations of extraordinary support from the government under a stress scenario, resulting in credit strength that remains closely aligned with that of the sovereign. 

Khazanah's investment portfolio realisable asset value (RAV) grew to RM156 bil as at end-2025 from RM151 bil a year earlier. The portfolio is diversified across more than 10 private and public market sectors and multiple geographies, providing a degree of resilience against sector specific volatility. Investment performance remains broadly stable, with the portfolio generating a seven-year rolling return of 6.1% since 2019 (six-year rolling