Fitch Ratings has assigned Bahrain
Mumtalakat Holding Company B.S.C.'s ('BBB'/Stable/'F3') MYR3bn Sukuk Murabahah
Programme a ' BBB' rating. The final rating is the same as the expected rating
reflecting the completion of the issuance and receipt of final documents
conforming to the information previously received by Fitch.
The Sukuk Murabahah Programme's
rating is in line with Mumtalakat 's Long-term Issuer Default Rating (IDR) and
senior unsecured rating. Mumtalakat is wholly-owned by the Government of
Bahrain and was created to act as an independent holding company for the
Government of Bahrain's stakes in strategic non-oil and gas assets of the
Kingdom of Bahrain.
According to the terms outlining the
transaction's structure, Mumtalakat will issue MYR-denominated sukuk (Islamic
bonds) of up to MYR3bn (aggregate outstanding) or its equivalent in foreign
currency which it will use for its Shariah-compliant general corporate purposes
as source of capital and as part of its strategy for refinancing existing debt
maturities in the coming years.
Mumtalakat's liabilities under the sukuk
issuances will be governed by the laws of Malaysia, and Fitch believes that
they would rank pari passu with Mumtalakat 's other senior unsecured
obligations. That said, legal enforcement of liabilities under Malaysian law
relating to Islamic finance in Bahrain has not been adequately tested yet and
court judgments might depart from this view. Fitch's rating for the Programme
reflects Fitch's belief that Mumtalakat would stand behind its obligations
given its important role in the Government of Bahrain's investment strategies
and related implications of any default for the Bahrain sovereign.
In accordance with its criteria, by
assigning a rating to the Programme, Fitch is not expressing an opinion as to
whether the Programme and/or any sukuk issuance under the Programme are
compliant with Shariah principles.
The agency applies its parent and
subsidiary rating linkage methodology in rating Mumtalakat, as it believes that
a strong relationship exists between the company and the Kingdom of Bahrain
('BBB'/Stable/'F3'). A change in Bahrain's ratings would result in a change in
Mumtalakat's ratings. Any change in the implied support of, commitment from,
and/or ownership by the Government of Bahrain could have negative rating
implications for Mumtalakat. In addition, raising substantial debt on behalf of
subsidiaries or the companies in which Mumtalakat has investments or
guaranteeing additional debt of subsidiaries or such companies by Mumtalakat
would be a negative credit factor.
(Global Arab Network / 01
Oct 2012)
---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com
No comments:
Post a Comment