MARC assigns ratings to SkyWorld’s proposed RM300 mln IMTN/CP programmes
KUCHING: MARC Ratings has assigned preliminary ratings of AIS(cg)/MARC-1IS(cg) to SkyWorld Capital Berhad’s proposed RM300 million Islamic Medium-Term Notes/ Commercial Papers programmes with a stable outlook.
SkyWorld Capital is the funding vehicle of parent SkyWorld Development Bhd (SkyWorld) to undertake the sukuk issuance. SkyWorld has extended an irrevocable and unconditional guarantee on the programme.
“The assigned ratings incorporate SkyWorld’s strong take-up rates and healthy operating margins due to a focused strategy of embarking on projects within populous urban areas that mitigates demand risk,” MARC said in a statement.
“Moderating the ratings are the weakening outlook on the domestic property market and SkyWorld’s highly leveraged balance sheet with its debt-toequity (DE) ratio of 0.95 times as at June 2022 (1QFY23).
“In assigning the rating,
MARC Ratings has factored in a potential decline in the DE ratio to 0.6x on an expected increase in total equity by end-1H2023.”
Relatively a new player in the domestic property industry, SkyWorld’s maiden project, SkyArena, a RM2.3 billion master development project on about 30 acres of land in Setapak, Kuala Lumpur, was launched in 2014.
The project comprises highrise residential projects and a commercial-cum-retail centre; of these, two residential blocks (Phase 1 and 2) have been completed.
Phase 3 comprising another high-rise residential development is upcoming and slated for completion in 2027 while Phase 4 consisting of a commercial-retail centre is targeted to be launched in 2026.
SkyWorld’s other category of development is the SkyAwani projects comprising affordable units under the government’s affordable housing programme known as the “Residensi Wilayah Keluarga Malaysia” (RUMAWIP).”