Fitch Ratings has assigned Serba Dinamik Holdings Bhd’s US$200 million sukuk due 2025 a final rating of ‘BB-‘, reflecting its strong market position in Malaysia, as the nation’s fourth-largest oil and gas service and equipment company by revenue in 2017.
In a statement on Dec 23, the agency said the ratings were also supported by Serba Dinamik’s solid financial profit, short-to-medium-term revenue visibility and low earning cyclicality.
“The company’s smaller operating scale and limited product and end-market diversification a relative to higher rated peers constrains its rating,” it added.
Fitch Ratings noted that the sukuk’s final rating is the same as the expected rating assigned earlier on Nov 28.
The sukuk is issued by Serba Dinamik’s wholly-owned subsidiary, SD International Sukuk II Limited (SDIS), is the obligation of the obligator Serba Dinamik International Ltd (SDIL) and is guaranteed by Serba Dinamik.
According to the statement, the ‘BB-‘ rating on the US dollar sukuk is also driven by Serba Dinamik’s issuer default rating and senior unsecured rating. As at 10:45am, Serba Dinamik shares traded 1 sen up to RM2.03 with 626,100 shares traded.
Source The Edge Markets