[RAM] RAM Ratings assigns final ratings to Tranche 8 Sukuk issued by RCEM's financing vehicle, Zamarad

RAM Ratings has assigned final ratings of AAA/Stable and AA2/Stable to Zamarad Assets Berhad’s (Zamarad or the Issuer) Tranche 8 RM140 mil Class A Sukuk and RM35 mil Class B Sukuk, respectively. This is the eighth issuance under Zamarad’s RM2 bil Sukuk Murabahah Programme (the Programme), sponsored by RCE Marketing Sdn Bhd (RCEM or the Originator). Similar to previous issuances, Tranche 8 will be collateralised by personal financing facilities extended to civil servants, originated by RCEM through its business partners. 

Tranche 8 is the third issuance under the Programme to have a Revolving Option which allows excess cash in the transaction to be utilised to purchase additional receivables from the Originator, subject to fulfilling certain conditions. Among these, the purchase must meet a minimum weighted average profit rate based on the original portfolio acquired at issuance, and the exercise of the option must have no rating impact under RAM’s assessment.

In assigning the final ratings, we have reviewed all relevant transaction documents and required credit enhancement, considering the final sukuk pricing and tax estimates. We find these to be in line with our expectations when we assigned the preliminary ratings, published on 14 October 2022 (click here for more information). 

RAM will maintain surveillance of the transaction 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 rated sukuk under this issuance.


Analytical contacts
Joel Thum
(603) 3385 2517
joel@ram.com.my

Tan Han Nee
(603) 3385 2529
hannee@ram.com.my