RAM Ratings (RAM) has announced its withdrawal of the AAA (fg)/Stable rating of Mydin Mohamed Holdings’ (MMH) MYR 350 million medium-term Sukuk (2011/2024).  This action was taken upon RAM receiving confirmation that MMH had fully redeemed outstanding Sukuk and cancelled the program on the 16th of May 2020. RAM further stated that it no longer has any rating obligations upon the Sukuk.  Previously in December 2019, RAM affirmed the enhanced AAA (fg)/Stable rating of MMH’s MYR 350 million medium term Sukuk, reflecting the irrevocable and u...

In a publication issued on the 26th of May 2020, Moody’s Investors Services (Moody’s) announced the downgrade of Arabian Centres Company (ACC)’s USD 500 million Sukuk due 2024 (issued by Arabian Centres Sukuk Limited) to Ba3 from Ba2. ACC is the largest owner and operator of retail malls in Saudi Arabia.  On the same day, Moody’s also downgraded ACC’s corporate family rating (CFR) to Ba2 from Ba1, and has placed all ratings under review for a downgrade. The Outlook on all ratings has been revised to ‘Ratings under Review’ fro...

Islamic Development Bank (IsDB)’s long-term Issuer Default Rating (IDR) has received affirmation at AAA from Fitch Ratings (Fitch), with a Stable Outlook.  The rating affirmation is based on IsDB’s intrinsic credit quality with Fitch assessing both solvency and liquidity at AAA . Fitch stated that whilst the COVID-19 pandemic will yield negative pressure on asset quality and capitalisation, the overall impact on IsDB’s credit profile will remain limited. Although solvency metrics are anticipated to deteriorate slightly, Fitch exp...

RAM Ratings (RAM) has reaffirmed AA2/Stable rating of MYR 4.5 billion Sukuk Ijarah of Tanjung Bin Power (TBP). The rating is supported by the healthy operating performance of TBP, which results in adequate debt-coverage rates.  The rating is an indication of the strong business profile of TBP, backed by the favourable terms of its Power Purchase Agreement (PPA) with its only off-taker, Tenaga Nasional Berhad (TNB). Nevertheless, similar to other independent power producers (IPP), TBP is also exposed to the inherent industry risks ar...

In a filing made to Boursa Kuwait on the 27th of May 2020, Warba Bank announced that it had received approval from regulatory authorities, namely the Central Bank of Kuwait, as well as the Capital Markets Authority, for its second Sukuk issuance, not exceeding KWD 150 million.  According to the filing, this issuance will be made under the umbrella Sukuk Program, not exceeding USD 2 billion, or the equivalent in other currencies. In a statement made in the filing, Shaheen Hamad al Ghanem, Warba Bank’s Chief Executive Officer, s...

Data from the National Bank of Kazakhstan indicates that Islamic banking assets currently represent just 0.21% of the total banking sector assets in Kazakhstan, reflecting not much of an improvement from the 0.16% share held in the previous year.  Grata International, a global network of international law firms, stated that Islamic products are still rarely used in Kazakhstan despite the Government of Kazakhstan taking steps to improve the sector’s attractiveness.  According to the Astana International Financial Centre (AIFC), the target is to...

Thailand’s Deputy Finance Minister, Santi Promphat, has given instructions to state-owned Islamic Bank of Thailand (IBank), to more than double its branch network across the country, raising its branch count to 100. Promphat stated that in order to comply with IBank’s mission and policy, branches should be set up in each district across Southern Thailand, adding that the South of Thailand housed the largest concentration of Muslims in the country, and hence was to be a key focus area within the expansion programme. At present, IBank has 40 branches nation...

In its latest Investment Highlights report, the Ministry of Investment of Saudi Arabia (MISA) reported that 348 new foreign investor licences have been granted in the January to March 2020 period (Q1 2020), marking a 19% year-over-year (YoY) increase.  On a quarterly basis, the number of new foreign investor licences issued increased 20% compared to the numbers for the last three months of 2019. According to Khalid Al Falih, Minister of Investment of Saudi Arabia, Q1 2020 marked the strongest period for investor interest in Saudi Arabia in a decade. The foreign investme...

At a virtual meeting held on the 20th of May 2020 between the Saudi Shura Council and the Kafalah Fund (Fund), strategies to overcome the impact of COVID-19 were discussed at large.  Key participants in the aforementioned virtual meeting included Dr. Faisal Al Fadel, Chairman of the Shura Council’s Economic and Energy Committee and the Chief Executive Officer of the Kafalah Fund, Homam Hashem. The meeting focused particularly on small and medium enterprises (SMEs) that were receiving support from the Fund.  One of the...

In its latest ratings report for Bangladesh, Moody's Investors Service (Moody’s), has predicted Bangladesh's economy to slow down in the next 18 months due to fall in exports of readymade garments (RMG) as well as fall in consumption and investments driven by the on-going pandemic. According to the ratings report, Bangladesh’s ratings have been affirmed at Ba3 with a stable outlook.  Moody's projects that Bangladesh’s gross domestic product (GDP) growth will decline to 4.6% in 2020 and to 4.2% in 2021, driven by the temporary slowdown in global growth. However, the rating agency expe...