Published: Tuesday October 2, 2012 MYT 11:43:00 AM
RAM Ratings assigns AA2 rating to Bahrain Mumtalakat's RM3b Sukuk
KUALA LUMPUR: RAM Rating Services has assigned an AA2 long-term rating to Bahrain Mumtalakat Holding Company BSC's RM3bil Sukuk Murabahah Programme (2012/2032), with a stable outlook.
RAM Ratings said Mumtalakat is the investment arm of the Kingdom of Bahrain for strategic non-oil-and-gas commercial assets.
The objective is to transform Bahrain's oil-based economy into one based on manufacturing and services. Its portfolio contains some of Bahrain's largest companies, in key sectors ranging from aluminium smelting to financial services and telecommunications.
According to the rating agency, Mumtalakat enjoys very strong support from its government. Although Mumtalakat's unit Gulf Air Company BSC is not operationally profitable, state financial support is channelled to Bahrain's national airline via the company.
"In essence, the AA2 rating reflects Mumtalakat's crucial role in the Bahraini government's economic agenda, which underscores the close rapport between them," said RAM Ratings.