PETALING JAYA: MARC Ratings Bhd has affirmed its AAIS rating on S P Setia Bhd’s RM3bil Islamic medium-term notes (IMTN) programme with a stable outlook.

       The credit rating agency noted that the initial proceeds of RM800mil from the issuance had been largely used by the property development company to fund capital injections into its joint-venture (JV) Battersea Power Station project in the United Kingdom.

       The Battersea project remains S P Setia’s major overseas undertaking with a 40% stake in the JV development with Sime Darby Property Bhd (40%) and the Employees Provident Fund (EPF) (20%).

       “S P Setia’s well-established position as a township developer, good sales track record and sizeable land bank in strategic urban and suburban locations remain key rating drivers,” MARC Ratings explained in a statement.

       “Gross development value (GDV) of S P Setia’s ongoing domestic projects stood at a strong RM9bil as at end-December 2021, with unbilled sales of RM4bil,” it added.

       MARC Ratings pointed out that S P Setia’s cash balance of RM3.1bil, coupled with sizeable unbilled sales, would support its financial and contractual obligations.

       Of the RM3.2bil maturing loans, about RM1.2bil will be refinanced through proceeds from further issuance under the IMTN programme, it said.