RAM Ratings has downgraded the enhanced long-term rating of Sarawak Power Generation Sdn Bhd’s Serial Sukuk Musharakah (Sukuk) of up to RM215 million, from AA1(s) to AA2(s), with a stable outlook. SPG, a wholly owned subsidiary of Sarawak Energy Berhad, is an independent power producer (IPP) that operates a 320-MW combined-cycle, gas-turbine (CCGT) facility (the Plant) in Bintulu, Sarawak.
The rating action is premised on RAM Ratings’ downgrading of Syarikat SESCO Berhad’s (SESCO) corporate credit rating - from AAA to AA1, with a stable outlook - in May 2011. SPG’s enhanced rating is anchored by a strongly worded letter of support (LoS) from SESCO, which states that the latter will ensure - either by equity, loans, grants and/or other means - that the Company fully and promptly meets all its financial obligations on the Sukuk throughout its tenure. (Press Release)