RAM Ratings revises outlook for Widad's RM110m sukuk to 'positive'

KUALA LUMPUR (Oct 25): Widad Group Bhd said RAM Ratings has revised its outlook for Widad Capital Sdn Bhd’s sukuk murabahah programme of up to RM110 million in nominal value, to positive, from stable.

The rating agency also reaffirmed Widad Capital’s AA2 rating, as its consistent financial performance in the past year, along with its sustainable performance, have exceeded expectations to record FSCR of above 1.90 times, Widad said.

“The upgraded rating of Widad Capital’s rating to AA2 positive outlook by RAM reaffirms our growing financial strength and robust business model.

“Indeed, in the face of challenging global and regional market conditions, WGB has shown a remarkable degree of resilience in not only improving its credit rating but also will continue enhancing profitability,” Widad Group managing director Datuk Dr Mohd Rizal Mohd Jaafar said in a press statement.

Widad Capital is a wholly-owned subsidiary of Widad Builders Sdn Bhd (WBSB), which is in turn wholly-owned by ACE Market-listed Widad Group. Widad Group is principally involved in construction activities and integrated facilities management services.

WBSB was awarded an RM490 million facilities management contract by the Malaysian government for the National Palace on Jalan Tuanku Abdul Halim here.

The contract was novated to Widad Capital on July 25, 2016, with WBSB appointed as subcontractor to undertake facilities management works.

Shares of Widad Group closed half a sen up yesterday at 39.5 sen apiece — its highest since March 2018 — bringing a market capitalisation of RM967.75 million.

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