RAM Ratings reaffirms purple boulevard’s sukuk Ijarah Ratings

KUALA LUMPUR: RAM Rating Services Bhd ( RAM Ratings) has reaffirmed Purple Boulevard Bhd’s RM250 million Sukuk Ijarah ratings under its RM450 million asset- backed Sukuk Ijarah Programme.

Purple Boulevard Bhd is a special- purpose vehicle ( SPV) sponsored by Nadin Holdings Sdn Bhd and Nadin Management Sdn Bhd.

RAM Ratings said the SPV was incorporated for the securitisation of the Ampang Point Shopping Centre, a suburban neighbourhood mall surrounded by well- established residential communities and commercial shop offices.

“The reaffirmation of the ratings of the Class A, Class B and Class C Sukuk Ijarah is premised on our expectation that Ampang Point’s sustainable net property income ( NPI) and adjusted valuation will stay intact, although its near- term cash f low performance will be affected during the transition period of the property’s asset enhancement initiatives.

“Whi le the proper ty’s performance had exceeded RAM’s sustainable cash flow expectation, we maintain this assumption for now in view of an asset reconfiguration exercise planned for the next one to two years,” it said in a statement yesterday.

RAM Ratings said collateral support offered by Ampang Point remained unchanged and commensurated with the assigned ratings, as reflected in the loan- to-value and stressed debt service coverage ratios of the respective Senior Class Sukuk Ijarah.

The reaffirmation of the guaranteed Class D Sukuk Ijarah’s rating was based on the credit standing of its guarantor, Danajamin Nasional Bhd, whose rating was reaffirmed at AAA/Stable on August 6, 2018.

Ampang Point Shopping Centre’s NPI for financial year 2017 and the first eight months of the 2018 financial year stayed broadly above RAM Ratings’ sustainable cash- f low assumption of RM21 million per annum. — Bernama