[RAM] RAM Ratings affirms TRIplc Medical's Senior Sukuk at AA1

RAM Ratings has affirmed the AA₁/Stable rating of TRIplc Medical Sdn Bhd’s (the Company) RM639 mil Senior Sukuk Murabahah (2017/2035) (Senior Sukuk). 

The affirmation reflects our expectation that TRIplc Medical’s ability to service its financial obligations will remain healthy, supported by a steady inflow of monthly concession payments and the satisfactory maintenance of a teaching hospital and academic complex on Universiti Teknologi MARA’s (UiTM) Puncak Alam campus. 

Maintenance performance was solid in 2024 and 6M 2025, with cumulative penalties at RM0.84 mil (or 2.5% of billed maintenance service charges (MSCs)). Deductions incurred, as well as reduced MSCs from UiTM’s partial use of the teaching hospital since its completion, are fully passed on to TRIplc FMS Sdn Bhd, the operations and maintenance services provider.  

During the review period, TRIplc Medical’s finance service coverage ratios (FSCRs) exceeded the 1.65 times threshold required to maintain the Senior Sukuk’s AA₁ rating, meeting the transaction’s financial covenants. Financial discipline and careful planning of future shareholders’ distributions are expected to preserve TRIplc Medical’s liquidity and credit strength, considering the transaction’s thin liquidity buffers in certain years. 

Although shareholder dividends distributions are permitted subject to post-distribution FSCR thresholds, any hefty payouts beyond the RM55.75 mil disbursed over the past three years under our sensitivity scenario could further impair the transaction’s liquidity profile and impact its overall credit metrics. In that regard, the management is mindful of its commitment to preserve the required FSCR profile whilst meeting its dividend commitments, though it may require deferral of some maintenance or construction expenditures at times. 

The sukuk rating is moderated by TRIplc Medical and TRIplc FMS’s lack of experience in hospital maintenance, although the satisfactory performance to date provides some comfort. The Company is also exposed to single-project and regulatory risks. Compensation prescribed in TRIplc Medical’s concession agreement with UiTM and the Government of Malaysia offers sukukholders sufficient protection in the event that the concession is terminated due to a default by the Company and/or UiTM. 


Analytical contacts
Liew Kar Ling
(603) 2708 8216
karling@ram.com.my

Davinder Kaur Gill
(603) 2708 8220
davinder@ram.com.my

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Sakinah Arifin
(603) 2708 8212
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