RAM reaffirms rating of Widad Islamic bonds

PETALING JAYA: RAM Ratings has reaffirmed the AA2 rating of Widad Capital Sdn Bhd’s (WCSB) sukuk murabahah programme of up to RM110mil in nominal value from stable to positive.

“The rating outlook has been revised from stable to positive, premised on the company exceeding our expectations by recording a better-than-expected finance service coverage ratio of above 1.90 times in the last two years and this trend is anticipated to continue – on a projected basis, ” RAM said in a statement.

“The company’s sustained outperformance may warrant an upward reassessment of the rating in the next 12 to 18 months, ” the ratings agency said.

Widad Group Bhd’s (WGB) managing director Datuk Mohd Rizal Mohd Jaafar said in a statement yesterday that WCSB’s rating by RAM reaffirmed its growing financial strength and robust business model.

“Indeed, in the face of challenging global and regional market conditions, WGB has shown a remarkable degree of resilience in not only improving its credit rating, but also continuing enhancing profitability, ” he said.

WCSB is a unit of Widad Builders Sdn Bhd (WBSB).

RAM Ratings said WBSB was awarded the contract for the management, operation and maintenance of the National Palace on Jalan Tuanku Abdul Halim, Kuala Lumpur (formerly Jalan Duta), for seven years from July 2015.

“The contract was novated to WCSB on July 25,2016, with WBSB being appointed as the sub-contractor to undertake facilities maintenance work, ” it said.

Source: TheStar