RAM assigns final ratings to sukuk issued by RCE's financing vehicle

RAM Ratings has assigned final AAA/Stable and AA2/Stable ratings to Zamarad Assets Bhd's (Zamrad) tranche 2 RM80 million Class A sukuk and RM20 million class B sukuk, respectively.

The tranche 2 sukuk is the second issuance under Zamarad's RM2 billion Sukuk Murabahah Programme.

Notably, the programme is RCE Marketing Sdn Bhd's (RCEM) third debt capital market programme after those issued by Al Dzahab Assets Berhad and Tresor Assets Berhad.

“As with the previous issuances, the Tranche 2 Sukuk will be collateralised by personal financing facilities (extended to civil servants) originated by RCEM through its business partners,” RAM said in a statement.

“These facilities will be repaid primarily via non-discretionary salary deductions processed by the Accountant General's Department and Angkatan Koperasi Kebangsaan Malaysia Bhd (Angkasa), thereby materially reducing the transaction's exposure to the borrower's credit risks as long as the borrower remains in active service.

“In assigning final ratings, we have reviewed all relevant transaction documents as well as assumptions applied and find them to be in line with our expectations when we assigned the preliminary ratings, published on 27 June 2019.”

Upon closing, RAM will monitor the transaction's performance on a regular basis via monthly performance reports prepared by the Servicer and the Trustee. We will keep the ratings under surveillance as long as there are outstanding tranches in the Programme.