Friday 29 Mar 2024
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KUALA LUMPUR (Dec 22): RAM Rating Services Bhd (RAM Ratings) has assigned 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 today, RAM Ratings said the rating was recommended 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. 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, adding the mall is an "integral component" of the KLCC development that is closely associated with KLCCH.
 
The rating agency also noted that Suria KLCC enjoyed continuous support from its minority shareholder CB Richard Ellis Group Inc.
 
On a stand-alone basis, RAM said 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.

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