[MARC] MARC removes QSP Semenanjung's Sukuk rating from MARCWatch Negative and maintains rating at A+IS with stable outlook - 23 Jul 2019

Posted Date: July 23, 2019

MARC has removed Quantum Solar Park (Semenanjung) Sdn Bhd's (QSP Semenanjung) RM1.0 billion Green SRI Sukuk rating from MARCWatch Negative. Concurrently, the rating has been maintained at A+IS with a stable outlook.

The rating action follows the confirmation from Suruhanjaya Tenaga vide letter dated July 15, 2019 that QSP Semenanjung's solar power plant in Merchang has achieved Commercial Operation Date (COD) on May 31, 2019, prior to the June 30, 2019 walkaway event date. With this development, all three QSP Semenanjung solar power plants are now fully operational; its plants in Gurun and Jasin had achieved COD on December 19, 2018 and April 30, 2019.

The MARCWatch Negative was placed on January 25, 2019 due to concerns that delays of the Jasin and Merchang plants in achieving COD within the prescribed timelines would increase the risk of termination of the power purchase agreements with Tenaga Nasional Berhad. This risk has since abated. MARC will continue to monitor the performance of QSP Semenanjung's solar power plants.

(For more information on the rating, please see MARC's report on QSP Semenanjung published on February 4, 2019 at www.marconline.com.my.)

Contacts:
Lim Wooi Loon, +603-2717 2943/ wooiloon@marc.com.my;
Lim Hui Boon, +603-2717 2959/ huiboon@marc.com.my