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RAM reaffirms Edra's sukuk rating on sufficient liquidity to weather power plant delays
20 Dec 2021 | Monday Source: The Edge Markets
RAM Ratings has reaffirmed its AA3/Stable rating on Edra Energy Sdn Bhd's sukuk wakalah of up to RM5.09 billion in nominal value (2018/2030), based on the company's strong liquidity, which will enable it to weather further delays in the completion of its gas turbine power plant in Alor Gajah, Melaka.
In a statement, the rating agency said its view is premised on a letter of undertaking from Edra Power Holdings Sdn Bhd (rated AA1/Stable by RAM), which is Edra Energy's sole shareholder, to irrevocably and unconditionally provide liquidity support to the company as and when required, to preserve its finance service coverage ratio (FSCR) at a minimum of 1.5 times.
