[RAM] RAM Ratings affirms UniTapah's AAA/Stable sukuk rating

RAM Ratings has affirmed the AAA/Stable rating of UniTapah Sdn Bhd's (UniTapah or the Company) Sukuk Murabahah of up to RM600 million (2014/2035) (the Sukuk).

The rating reflects UniTapah’s steady cash flow and strong debt service coverage, supported by fixed monthly payments from Universiti Teknologi MARA (UiTM) under a 23-year concession to develop and maintain the UiTM Tapah campus in Perak. Operating performance remained strong in 2025, with an average monthly KPI score of 99.7% (2024: 99.8%) and minimal performance deductions. Campus maintenance is outsourced to Everfine FMS Sdn Bhd, a subsidiary of facility management service provider GFM Services Berhad. Timely receipt of availability charges continues to underpin the transaction’s robust debt servicing capacity. Major maintenance needs are supported by a healthy maintenance reserve fund balance of RM17.1 mil as at end-December 2025.

UniTapah's finance service coverage ratios (FSCRs), inclusive of cash balances, recorded on the June and December 2025 sukuk repayment dates stayed above earlier projections, backed by timely concession receipts and stable maintenance margins. Pre-financing cash flow in FY Dec 25 stood at RM46.4 mil, partially benefitting from the collection of concession receipts that were in arrears at end-2024 and subsequently paid during the year. Under RAM’s stressed analysis, the Sukuk’s minimum and average FSCRs are forecast at 1.88 times and 1.98 times, respectively (base case minimum: 2.16 times). Structural features, including restrictive covenants that prohibit shareholder distributions and additional borrowings, provide further protection for sukukholders.

As with other concession-based transactions, UniTapah is exposed to concession termination risk. RAM considers this risk remote, given the Company's strong operating track record and the relatively non-complex nature of facilities maintenance. Counterparty risk is viewed as low, with the Government of Malaysia, via UiTM, as the ultimate obligor of concession payments.


Analytical contacts
Lai Jing Wei 
(603) 2708 8239  
jingwei@ram.com.my

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

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