YNH’s sukuk wakalah rating downgraded

KUALA LUMPUR: MARC Ratings has removed YNH Property Bhd’s Islamic Medium-Term Notes Programme (sukuk wakalah) rating from MARCWatch Negative placement and concurrently downgraded the rating to BBIS.

“The rating had been on negative watch since Jan 18, 2024, precipitated by YNH’s weak financial position, delayed asset disposals and material issues concerning its key shareholder that have compounded the challenges the group has been facing to address its weakening credit profile,” MARC said in a statement.

Since the negative rating in January, the rating agency noted that YNH has not shown any meaningful progress in addressing concerns about meeting its upcoming financial obligations.

YNH has an outstanding RM323mil under the programme, of which the first tranche of RM153mil will mature on Feb 28, 2025. It is required to build up 50% of this amount through monthly payments of RM6.1mil into a reserve account from Feb 28, 2024, onwards.