The rating agency also raised the short-term rating of the telecommunications service provider’s Al-Murabahah commercial paper to P1 from P2 previously.
RAM said Celcom’s credit profile had been significantly boosted with Telekom Malaysia Bhd’s emergence as a shareholder.
Telekom, which spent approximately RM5.6bil to fully acquire Celcom, was expected to lend strong and firm support to ensure its continued well-being, the statement added.
“In return, Celcom represents a very strategic asset to Telekom. It is envisaged to contribute around 40% of Telekom’s revenue in the next few years,” RAM said.
The rating agency said Telekom’s ability to extend financial support to Celcom was very strong as it had a sturdy business and financial standing and also had solid regulatory support for its key role in spearheading the development of the local telecoms industry.
“In reflection of its credit strength, RAM reaffirmed the AAA rating on Telekom’s debt securities in October 2003,” it said. – AFX-Asia
Malaysian Rating Corp Bhd (MARC) has reaffirmed the rating of AID (Single A Flat, Islamic Debt) on
MARC said that the reaffirmation of the rating reflected the stable and predictable cash flow, which was expected to cover the company’s debt servicing requirements comfortably, the presence of a long-term fuel supply contract which eliminated supply disruption risk, the adoption of proven engine design and well-developed operating methods for its plant, and an issue structure that promoted the scheduled amortisation of the Islamic debt.
These strengths were moderated by the declining but still substantial debt level and limited financial flexibility, MARC said.
ARLT owns and operates a 50-MW medium fuel oil power plant in Melawa, Sabah. The power plant’s total generating capacity and energy production are sold to Sabah Electricity Sdn Bhd (SESB) pursuant to a 21-year power purchase agreement (PPA) which began on Oct 31, 1995.
The PPA has been structured to provide a stable and predictable revenue stream through a minimum payment provision (capacity payment), dependent on plant capacity and availability. – Bernama
The rating agency also raised the short-term rating of the telecommunications service provider’s Al-Murabahah commercial paper to P1 from P2 previously.
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