KUALA LUMPUR, Nov 9 (Bernama) -- Malaysian Rating Corporation Bhd has affirmed the AAA(IS) rating on special purpose company, IJN Capital Sdn Bhd's (IJN Cap) outstanding RM100 million of the RM209 million Sukuk Musyarakah programme.
In a statement here on Monday, MARC said the rating primarily reflected the credit quality of Institut Jantung Negara Sdn Bhd (IJN) which effectively funds the obligations under IJN Cap under the Sukuk Musyarakah.
The outstanding Sukuk under the RM209 million programme additionally benefits from a requirement under the issue structure to set aside a proportion of government receivables into a specific revenue account for its redemption on or before maturity in 2013.
The rating agency said the remaining balance of RM109 million of the yet to be issued Sukuk, whose maturities extend beyond 2013, has been affirmed at AA+(IS).
The stable outlook for both ratings reflect MARC's expectation that IJN's credit profile will remain strong in the near term, underpinned by its strong financial profile and its position as the premier cardiac centre in Malaysia.
Under the rated programme, IJN Cap issued Sukuk to fund the refurbishment of IJN's existing hospital facilities, construction of a new block and purchase of equipment.
IJN which was part of the Kuala Lumpur General Hospital until August 1992 when it was corporatised, provides comprehensive cardiovascular treatment including cardiology, pediatric cardiology and cardiothoracic surgery, supported by a team of 65 doctors.
The hospital, which is Malaysia's leading heart centre, has continued to invest in medical equipment to keep pace with the latest techniques in the field and to further strengthen its position in the healthcare sector. It is undertaking an expansion plan that will increase its present 274-bed and five-operating theatre capacity to 428-bed and seven-operating theatre, to be fully operational by end-2010.
MARC expects the expansion programme, partly funded from the proceeds from the Sukuk issue, to support earnings and cash flow growth in the medium term.
For the financial year ended Dec 31, 2008, the group recorded an increase in revenue and pre-tax profit to RM310.5 million and RM32.5 million respectively on the back of an 9.1 per cent increase in patients to 175,667.
