KUALA LUMPUR: RAM Rating Services Bhd (RAM Ratings) has assigned the final AAA/Stable/P1 ratings to Suria KLCC Sdn Bhd’s sukuk programmes, which aim to raise up to RM600 million.
Suria KLCC, a unit of KLCC Property Holdings Bhd (KLCCP), owns and manages the six-storey Suria KLCC shopping mall here.
In a statement yesterday, RAM Ratings said the rating was based on the parental support provided to Suria KLCC.
“Our view on the parental support took into consideration the close relationship between Suria KLCC and KLCC Holdings Sdn Bhd (KLCCH),” it said, noting that KLCCH holds a 64.7% stake in KLCCP.
RAM Ratings said Suria KLCC accounted for about a third of the revenue and assets of KLCCP.
The rating agency also noted that Suria KLCC enjoyed support from its minority shareholder, CB Richard Ellis Group Inc.
On a stand-alone basis, RAM Ratings added that the firm’s credit profile was underscored by its “unrivalled” location within the prime KLCC development.
However, RAM Ratings said Suria KLCC’s ratings were constrained by a high degree of asset- and geographical-concentration risk.
“We expect Suria KLCC’s near-term debt obligations to be refinanced through the proceeds from the programmes,” it said.
This article first appeared in The Edge Financial Daily, on December 23, 2014.