CREDIT RATING REVIEW
The Group actively engages with the Malaysian Rating Corporation Berhad (“MARC”), the credit rating agency that provides an independent assessment of the Group’s credit metrics and financial standing.
MARC has affirmed its rating of A+IS and A-IS in relation to the Sukuk Wakalah Programme of up to RM3.5 billion and Perpetual Sukuk Musharakah Programme of up to RM2.0 billion respectively (collectively referred to as “Sukuk Programmes”).
The ratings on the existing Sukuk Programme carry a stable outlook in view of the DRB-HICOM’s continued strength in its key automotive segment that is reflected by its strong market position and steady contribution to group profitability, recurrent income from a government defence contract and concession assets as well as healthy liquidity. The ratings are mainly moderated by the weakening performance of its subsidiary Pos Malaysia Berhad, due to the decline of its core conventional mail operations and by concerns that automotive sales could decline after the expiry of the sales tax holiday.
The stable outlook reflects MARC’s expectation that DRB-HICOM’s strong operational track record and market position in the automotive segment will continue to support group performance.
