[MARC] MARC Ratings upgrades MBSB Bank’s Structured Covered Sukuk Murabahah Tranche 4 rating to AAAIS

MARC Ratings has upgraded MBSB Bank Berhad’s Structured Covered Sukuk Murabahah Tranche 4 rating to AAAIS from AA+IS, with a stable outlook.

The rating upgrade reflects Tranche 4’s full cash collateralisation. As of end-June 2025, RM293.2 million was held in the designated account to cover RM285.0 million in outstanding obligations, representing 102.9% overcollateralisation.

MBSB Bank established a RM2.295 billion structured covered sukuk facility to facilitate the transfer of all Islamic assets and liabilities from holding company MBSB Berhad to MBSB Bank. The sukuk features dual recourse: (1) direct recourse to MBSB Bank as a senior unsecured creditor in the event of default, and (2) recourse to Jana Kapital Sdn Bhd, a special-purpose vehicle that guarantees the cover pool, which is held in trust by MBSB Bank.

MARC Ratings notes that the cover assets for Tranche 4 comprise personal financing facilities to civil servants, which are repaid through non-discretionary salary deductions administered by Angkatan Koperasi Kebangsaan Malaysia Berhad, thereby significantly mitigating delinquency risk.

Farhan Darham, +603-2717 2945/ farhan@marc.com.my
Yazmin Abdul Aziz, +603-2717 2948/ yazmin@marc.com.my