[RAM] RAM Ratings assigns preliminary ratings to Tranche 11 sukuk to be issued by RCE Marketing's financing vehicle, Zamarad

RAM Ratings has assigned preliminary ratings of AAA/Stable and AA₂/Stable to Zamarad Assets Berhad’s (Zamarad or the Issuer) Tranche 11 RM135.0 mil Class A Sukuk and RM25.0 mil Class B Sukuk (the Sukuk). This marks the eleventh issuance under Zamarad’s RM2.0 bil Sukuk Murabahah Programme, sponsored by RCE Marketing Sdn Bhd (RCEM or the Originator).

Similar to Zamarad’s Tranches 6 to 10 Sukuk, Tranche 11 will incorporate a Revolving Option (RO) feature, allowing the Issuer to utilise excess cash in the transaction to acquire new receivables from RCEM, subject to meeting predetermined conditions. Our current assessment for Tranche 11 assumes that the RO will not be exercised during the Sukuk’s tenure. Under the transaction terms, any exercise of the RO must not have any adverse impact on the assigned ratings.

Tranche 11, like previous Zamarad tranches, will be collateralised by personal financing (PF) facilities extended to civil servants, originated by RCEM through its business partner. The PF will be repaid by way of non-discretionary salary deductions processed by Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa), an apex cooperative. The compulsory deductions, coupled with the low attrition rate in the civil service, moderate the credit risks of the PF receivables.

The Sukuk will be backed by a portfolio of PF receivables with an outstanding principal balance of RM185.65 mil, based on the cut-off date of 31 August 2025, and a prefunded cash reserve of RM3.23 mil in the Finance Service Reserve Account at issuance. The resultant overcollateralisation ratios of 37.52% and 16.03% for the Class A and B Sukuk, respectively, provide adequate credit support to mitigate losses from defaults and prepayments assumed under AAA and AA₂ stress scenarios.

In assessing the adequacy of credit support, we have maintained our base-case assumptions of 0.09% for monthly net default rate and low and high prepayment rates of 0.035% and 0.80%, respectively. Stress scenarios applied in our rating analysis are similar to those employed for all tranches issued under Zamarad and Al Dzahab Assets Berhad – another RCEM-sponsored vehicle.


Analytical contacts
Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my

Lim Chern Yit
(603) 2708 8302
chernyit@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my