[RAM] RAM Ratings affirms TRIplc Medical's Senior Sukuk at AA1

RAM Ratings has affirmed the AA₁/Stable rating of TRIplc Medical Sdn Bhd’s (the Company) RM639 million Senior Sukuk Murabahah (2017/2035).

The affirmation is premised on our expectations that TRIplc Medical’s debt-servicing ability will stay intact, supported by steady and predictable monthly concession payments from Universiti Teknologi MARA (UiTM) and the satisfactory maintenance performance of the teaching hospital and academic complex at UiTM’s Puncak Alam campus. In 2025 and 2M 2026, maintenance performance remained satisfactory, with cumulative penalties of RM0.7 mil, equivalent to 2.7% of billed maintenance service charges. These deductions, including those arising from lower utilisation of some hospital sections, are fully passed through to TRIplc FMS Sdn Bhd – the operations and maintenance provider and Triplc Medical’s sister company – limiting their impact on the Company's cash flows.

Debt coverage remained strong during the review period, partly supported by the delayed settlement of outstanding construction costs, which temporarily boosted transaction cash reserves. As a result, the annual finance service coverage ratios (including cash balances and measured on payment dates) remained comfortably above the 1.65 times threshold for the AA₁ rating and the covenanted minimum debt-service coverage level.

While shareholder distributions remain permissible subject to financial covenants, disciplined cash retention remains key to preserving credit strength, given the thinner liquidity buffers following RM57.4 mil of payouts over the past three years. Triplc Medical made no dividend distributions in the last year and continued to meet its Junior Sukuk profit obligations as scheduled. Expenditure deferrals may also support near term credit metrics, if required, although sustained reliance on such flexibility may negatively affect maintenance performance.

The rating is moderated by the operational complexity of hospital maintenance as well as the issuer’s exposure to single-project and regulatory risks. Satisfactory maintenance performance to date provides comfort while compensation provisions in the concession agreement offer sukukholders adequate protection in the unlikely event of concession termination due to default by either the Company or UiTM.


Analytical contacts
Kee Hwai Zher
(603) 2708 8259
hwaizher.kee@ram.com.my

Davinder Kaur Gill
(603) 2708 8220
davinder@ram.com.my

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