[RAM] RAM Ratings upgrades AC First Genesis' Class B Sukuk Ijarah to AAA/Stable, affirms Class A rating

RAM Ratings has raised the rating of AC First Genesis Berhad’s Class B First Tranche Sukuk Ijarah to AAA/Stable from AA₂/Stable. The upgrade reflects the anticipated fully cash-backed position of the Class B Sukuk after the scheduled redemption of the Series 2 Sukuk Ijarah on 28 May 2026. The rating of the Class A Sukuk Ijarah has been affirmed at AAA/Stable.

The sukuk is backed by Aman Central Mall (the Mall), an eight-storey retail mall in Alor Setar, Kedah. AC First Genesis is a trust-owned special-purpose vehicle set up to facilitate the securitisation under the sukuk programme.



During the review period, we revised our sustainable cashflow assumption for Aman Central Mall to RM50 mil per annum and lowered the capitalisation rate applied, reflecting asset enhancement initiatives, higher occupancy and rental rates, and the Mall’s operating maturity. The revised figures, together with the assumed post-redemption structure, translate into a loan to value ratio of 35.70% and stressed finance service coverage ratio of 2.80 times for the Class B Sukuk, commensurate with the AAA ratings.

In FY Dec 2025, Aman Central Mall recorded a significantly higher total income of RM73.88 mil, driven primarily by successful tenant remixing and growth in base rental rates. Net property income (NPI) increased 13% y-o-y to RM46.79 mil, with the NPI margin a higher 63% (FY Dec 2024: RM41.53 mil and 60%), indicative of revenue growth alongside utility cost savings.

The Mall continues to benefit from its prime location, a broad catchment area and limited direct competition, although retail performance remains sensitive to macroeconomic conditions, including cost-of-living pressures, subsidy rationalisation and geopolitical risks.

 

Analytical contacts
Joel Thum
(603) 2708 8232 
joel@ram.com.my

Lim Chern Yit
(603) 2708 8302 
chernyit@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my