[RAM] RAM Ratings affirms Solarpack Suria Sungai Petani's SRI sukuk at AA2/Stable

RAM Ratings has affirmed the AA₂/Stable rating of Solarpack Suria Sungai Petani Sdn Bhd’s (3SP or the Company) ASEAN Green SRI Sukuk Wakalah of up to RM305 mil (2023/2043). The affirmation continues to reflect 3SP’s strong and predictable projected cash flow coverage under its long term power purchase agreement, backed by operating track record of its 90.88 MW_ac solar photovoltaic plant in Sungai Petani, Kedah (the Plant) and structural liquidity protection.

The Plant generated 175.5 GWh in 2025 and 48.7 GWh in 1Q 2026 (2024: 175.8 GWh), supported by favourable solar irradiance and stable operating availability. Generation is expected to remain broadly in line with past historical performance levels for the rest of the year. As at 30 June 2026, 3SP maintained cash and cash equivalents of RM25.24 mil after paying a RM10 mil preference dividend to OCK Group Berhad. Its finance service coverage ratio (FSCR), including cash balances, was 2.40 times on the most recent repayment date of 6 April 2026, exceeding our expectation of 2.00 times.

Under our sensitivity assumptions, 3SP is anticipated to sustain minimum and average annual FSCRs of 1.65 times and 1.85 times, respectively, over the remaining tenure of the sukuk. These coverage levels remain consistent with the current rating, although this cushion is expected to narrow over time as plant degradation gradually weighs on generation and cash flow. Prudent dividend management and cash retention will therefore remain important to preserve liquidity buffers for future sukuk obligations and maintain rating headroom.

As with other solar plants, exposure to solar irradiance variability and inherent concentration risk from reliance on a single project are key rating considerations. These are partly mitigated by the Plant’s modular design and vast 204.2-acre site, which reduce the likelihood of equipment faults or site-specific disruptions that would materially impair overall generation.

OCK Group completed its investment in Solarpack Asia Sdn Bhd – a 3SP shareholder and the Plant’s operations and maintenance service provider – through redeemable preference shares on 15 December 2025. RAM views this transaction as credit neutral to the sukuk, as it does not alter 3SP’s ordinary shareholding structure, contractual operating arrangement or ring fenced project cash flow profile, notwithstanding the appointment of new directors.


Analytical contacts
Liew Kar Ling
(603) 2708 8216
karling@ram.com.my

Chong Van Nee, CFA
(603) 2708 8210
vannee@ram.com.my

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