RAM Ratings has assigned a long-term rating of AA2 to Konsortium ProHawk Sdn Bhd’s (ProHawk) proposed Sukuk Murabahah Programme of up to RM900 million, with a stable outlook.
The rating reflects Prohawk’s strong debt-servicing ability that is backed by contractual cashflow.
According to a Bernama report, RAM Ratings said upon the completion of the project within three years, ProHawk will receive a predictable stream of concession payments over the following 27 years in the form of availability charges and maintenance service charges.
RAM Ratings Head of Real Estate and Construction Ratings Thong Mun Wai said the company’s debt-servicing ability is viewed as strong, with projected stressed minimum and average finance service cover ratios of 1.57 times and 1.72 times, respectively.
“Counterparty risk is low as the obligor of the concession payments are the government of Malaysia, with funds allocated through the Ministry of Health,” said Thong.
Various measures in the financing structure of the transaction minimised cashflow leakage. These include limits on ProHawk’s activities and indebtedness.
It said concession payments will be directly deposited into key designated accounts operated by the facility agent, which strictly manages the cash inflows and outflows.