Fitch affirms Ranhill

Fitch Ratings said it affirmed Ranhill Bhd.'s long-term foreign-currency issuer default rating at B- and senior rating at B- with a recovery rating of RR4.

The outlook is stable.

The resolution of the Rating Watch negative follows Ranhill's recent announcement that it has obtained Securities Commission approval for the issuance of RM 800 million of Sukuk Musharakah in two tranches by wholly owned subsidiary Ranhill Power Sdn Bhd., the agency said.

The stable outlook reflects Fitch's view that the sukuk should be fully subscribed by virtue of guarantees from Maybank Islamic Bhd., a subsidiary of Malayan Banking Bhd. (A-/stable), and Danajamin Nasional Bhd., ultimately owned by the sovereign (A-/stable), the agency said.

Fitch placed Ranhill's ratings on Rating Watch negative on Feb. 11 due to increased liquidity risk flowing from the impending maturity of the notes, the agency added.

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