MARC Ratings affirms AAA rating on MBSB Bank’s sukuk tranche


KUALA LUMPUR: MARC Ratings has affirmed its AAAIS rating on MBSB Bank Bhd’s Structured Covered Sukuk Murabahah Tranche 4, with a stable outlook.

The rating agency, in a statement, said the affirmation reflected the tranche’s substantial credit enhancement, supported by its fully cash-collateralised position.

As at end-June 2026, designated account balances of RM348.5mil were sufficient to cover the RM215mil outstanding sukuk and remaining profit obligations.

It said principal receivables of RM452.8mil provided additional support, resulting in a strong over-collateralisation level of 210.6%.

MBSB Bank established the RM2.295bil structured covered sukuk facility to facilitate the transfer of Islamic assets and liabilities from its holding company, MBSB Bhd.

The sukuk provides dual recourse to MBSB Bank as a senior unsecured obligation in the event of default, and to Jana Kapital Sdn Bhd, the special-purpose vehicle guaranteeing the cover pool held in trust by the bank.

As at end-June 2026, RM215mil remained outstanding from Tranche 4’s original issuance of RM810mil.

The tranche is backed by personal financing facilities extended to civil servants, with repayments collected through mandatory salary deductions administered by Angkatan Koperasi Kebangsaan Malaysia Bhd (ANGKASA).

MARC Ratings said the payroll deduction mechanism supported repayment discipline and mitigated delinquency risk.

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