RAM Ratings upgrades Widad Capital's sukuk to AA1 with stable outlook

KUALA LUMPUR: RAM Rating Services Bhd (RAM Ratings) has upgraded the rating of Widad Capital Sdn Bhd’s sukuk murabahah programme of up to RM110 million in nominal value to AA1 from AA2 and revised the rating outlook to stable from positive.

The rating agency said this is based on the strong debt-servicing ability and healthy operating performance of the Widad Group subsidiary, underpinned by timely monthly contractual payments from the Public Works Department under the facilities maintenance contract for the National Palace.

"The upgrade is further supported by the company commendable operating track record in delivering its services under the contract over the past four years,” it said in a statement today.

Widad Capital is wholly owned by Widad Builders Sdn Bhd, the construction and integrated facility management arm of Bursa Malaysia-listed Widad Group Bhd.

RAM Ratings said the company has appointed Widad Builders as the sub-contractor to undertake the facilities maintenance work at the National Palace.

"Widad Builders has an established track record in maintaining the National Palace through the last seven years, including three years’ similar experience prior to the present contract.

"Under the sub-contract, Widad Builders is paid a fixed percentage of Widad Capital’s revenue, thus shielding the company from thinning margins and a variation in costs,” it added. - Bernama
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