RAM Ratings has revised the outlook on the long-term ratings of Menara ABS Berhad's Tranches A2, A3 and A4 Sukuk to negative (from stable) and maintained the outlook on Tranches A1 and B Sukuk at stable. Concurrently, it reaffirmed the ratings of Tranches A1, A2, A3, A4 (collectively known as the Tranche A Sukuk) and Tranche B at AAA, AA2, A1, A2 and AAA, respectively.
Menara ABS is a trust-owned, special-purpose vehicle incorporated solely for this sale-and-leaseback transaction involving 4 properties - Menara TM, Menara Celcom, TM Taman Desa and TM Cyberjaya (collectively, "the Properties") – previously owned by
RAM Ratings' negative outlook on Tranches A2, A3 and A4 signals the potential revision in our adjusted valuation of the Properties, which may face a material squeeze on their net property income (NPI) margin in the medium term. The narrower NPI margin stems from the higher-than-assumed maintenance cost for
"For this review, RAM has maintained the portfolio's adjusted valuation at
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