The AAA rating reflected the strength of the project, with assured demand for the production of chilled water supply to government premises in Putrajaya, said the rating agency.
The rating also reflects its minimal credit risk with the Government and Putrajaya Holdings as the main off-takers, strong financial support from its ultimate shareholder, Petroliam Nasional Bhd, (Petronas) rated AAA and the tried and tested technology applied in its district cooling system (DCS) plants.
Governed by a 22-year concession agreement, GDC Putrajaya operates and maintains DCS plants that supply chilled water to government premises in Putrajaya.
To date, GDC Putrajaya runs four main plants: Plant 1, Plant 2, Wisma Putra plant and the Convention Centre plant. – Bernama
The rating reflects the Government's unconditional and irrevocable obligation to pay the acknowledged sum on the stipulated date stated on the facility payment certificate (FPC).
Each FPC will then be assigned to each tranche of MTN where the payment date on the FPC shall be on the maturity date of the respective MTN to which it is linked to, according to MARC.
Proceeds from the MTN programme totalling RM1.27bil received by Gerbang Perdana CIQ, the special purpose vehicle set up for the financing exercise, will be lent to Gerbang Perdana Sdn Bhd (GPSB), the turnkey contractor for the Gerbang Selatan Bersepadu project.
GPSB is owned by a consortium of three companies led by Merong Mahawangsa Sdn Bhd with a 60% equity stake.
The remaining 40% stake is equally shared by Detik Nagasari Sdn Bhd and DRB-Hicom Bhd
. – Bernama
RAM said it had also revised the outlook for the long-term rating, from stable to positive.
Affin Bank’s performance during the first-half year ended June 30 showed strong improvement, with its pre-tax profit surging to RM106.76mil compared with RM13.25mil previously.
Its substantially lower loan-loss provision was a good sign that the bank’s asset quality had stabilised, RAM said.
Affin Bank is expected to stay its course and achieve close to RM200mil in pre-tax profit this year.
While the bank’s overall position had improved, its delicate asset quality was the main constraint against any upward revision in its ratings, RAM said.
The AAA rating reflected the strength of the project, with assured demand for the production of chilled water supply to government premises in Putrajaya, said the rating agency.
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