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24 May | Friday
RAM Ratings reaffirms AAA rating of CJ Capital’s sukuk

RAM Ratings has reaffirmed the AAA/Stable rating of CJ Capital Sdn Bhd’s (the Company) RM114 mil Sukuk Murabahah (2010/2020) (the Sukuk). During the review period, the last annuity payment from CJ Capital’s counterparty – the Johor State Government (the State) – was received one month ahead of the scheduled date. With RM38.1 mil of cash balances as at end-February 2019, the Company has sufficient liquidity to service its obligations under the remaining Sukuk of RM15.81 mil and RM15.83 mil, due on 15 July 2019 and 15 July 2020, respectively.

Wholly owned by Cahaya Jauhar Sdn Bhd (CJSB), CJ Capital was set up as a funding conduit to raise the Sukuk. CJSB, a 60:40 joint venture between UEM Land Berhad and the State via Permodalan Darul Ta’zim Sdn Bhd, was awarded the contract for the development and maintenance of Kota Iskandar, the State’s new administrative centre in Iskandar Puteri. In return for the construction of Kota Iskandar and the execution of variation orders for its first phase, CJSB is entitled to receive RM15 million in annuity payments from State Secretary Johore (Incorporated) for 10 years ending in February 2019.

Analytical contact
Davinder Kaur Gill
(603) 3385 2525
davinder@ram.com.my

Media contact
Padthma Subbiah
(603) 3385 2577
padthma@ram.com.my

 Date of release: 24 May 2019

The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2019 by RAM Rating Services Berhad

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