MARC Ratings has assigned a preliminary rating of MARC-1IS to Sunsuria Berhad’s proposed Islamic Commercial Papers (ICP) Programme of up to RM500.0 million. The rating agency has concurrently affirmed the rating of A+IS on the property developer’s RM500.0 million Sukuk Wakalah Programme. The rating outlook is stable.
The long-term rating reflects Sunsuria’s conservative approach to property launches and land banking, healthy overall take-up rates for its ongoing projects, and low-to-moderate leverage position. Moderating factors are execution risk associated with the group’s expansion into other business segments, and the potential increase in inventory from the lacklustre take-up of its commercial development in Setia Alam.
Proceeds from the initial issuance of the ICP will be used to refinance short-term borrowings as well as for working capital purposes. Liquidity remains strong, underpinned by cash and cash equivalents of RM432.7 million as of end-June 2025 and unutilised credit lines totalling RM224.0 million. Group borrowings stood at RM793.2 million (FY2024: RM570.4 million), with a debt-to-equity (DE) ratio of 0.73x and a net DE ratio of 0.33x. Upcoming sukuk maturities in October 2025 and December 2025 are expected to be met through a combination of internal funds and proceeds from available borrowing facilities. By end-September 2025, the DE ratio is projected to remain around 0.65x, with no additional funding requirements anticipated.