Malaysia Rating Corporation (MARC) has affirmed its AA- rating of Malaysia Marine and Heavy Engineering Holdings’ (MHB) MYR 1 billion Sukuk Murahabah programme, with a stable outlook.
MARC expects improvement in MHB’s order book and that its healthy liquidity position will be maintained.
In a statement, the rating agency stated that MHB’s rating is being moderated by a weaker-than-expected order book replenishment that has continued to weigh on Malaysia’s largest offshore fabricator performance.
MHB had MYR 5.5 billion worth of contracts in its tender book at end-2018, the majority of which comprised of contracts from related companies, leading to a higher likelihood of it being awarded some of these contracts.
The firm’s existing contracts consist of the engineering, procurement as well as construction, installation and commissioning of an offshore central processing platform for the Bokor Phase 3 redevelopment project.
MHB’s MYR 974.4 million revenue in 2018 was relatively unchanged, compared to MYR 956.4 million in 2017.
Source Islamic Business&Finance