RAM Rating Services Bhd (RAM) has reaffirmed the ratings of AA3 and A1 for MNRB Holdings Bhd (MNRB) and AA2/P1 and AA3 for MNRB’s wholly-owned subsidiary, Malaysian Reinsurance Bhd (Malaysian Re).
In a statement today (Feb 5), RAM reaffirmed the ratings of AA3 and A1 for RM320 million senior sukuk and subordinated sukuk, respectively to MNRB.
“MNRB’s ratings also incorporate the subordination of its creditors to the policyholders and creditors of its regulated operating entities, as well as moderate leverage at the holding company level,” it said.
MNRB is an investment holding company, listed on the Main Market of Bursa Malaysia while Malaysian Re is Malaysia’s leading reinsurance company.
The MNRB group’s main operating companies comprises of Malaysian Re, two takaful operators, Takaful Ikhlas Family Bhd and Takaful Ikhlas General Bhd as well as Malaysian Re (Dubai) Limited, an underwriting arm which operates in Dubai, United Arab Emirates.
For Malaysian Re, RAM has reaffirmed the ratings of AA2/P1 and AA3 for insurer financial strength ratings and RM250 million subordinated medium-term note programme, respectively. RAM also confirmed the outlook for these credit ratings as stable.
“As for senior and subordinated RM800 million medium term notes programme, RAM has also reaffirmed the ratings of AA2 and AA3, respectively.
“The rating action considers Malaysian Re’s strong market position in the domestic general reinsurance space and the adequate capitalisation of MNRB’s key operating subsidiaries,” RAM added.
RAM Rating Services Berhad is a subsidiary of RAM Holdings Berhad, a leading provider of independent credit ratings, research, training, risk analysis, ESG analytics and bond pricing.
