MARC Ratings has affirmed its AAA, AA and A ratings on Trusmadi Capital Sdn Bhd’s RM235 million Class A, RM40 million Class B and RM25 million Class C Issue 1 Medium-Term Notes (MTN). The rating agency has also affirmed its MARC-1 rating on the company’s RM300 million Issue 1 Commercial Papers (CP). The MTN and CP programmes are subject to a combined issuance limit of RM300 million. The outlook on all long-term ratings remains stable. As at end-May 2026, RM20 million of Class A MTN and RM240 million of CP were outstanding.
The affirmed ratings are driven by MARC Ratings’ expectation that Trusmadi Capital will maintain loan-to-value (LTV) ratios consistent with the respective rating levels. Additional support stems from Menara Shell’s (the collateral property) strategic KL Sentral location, resilient occupancy profile and strong tenant credit quality.
MARC Ratings derives the LTV ratios using its income capitalisation approach, based on a stabilised net operating income (NOI) calculated from a five-year average of actual NOI for 2024–2025 and projected NOI for 2026–2028. This results in a collateral value of RM586.1 million for Menara Shell, 12.8% below its independently appraised market value of RM672.5 million as of 31 December 2025. The collateral property has a total net lettable area (NLA) of 557,458 sq ft.
The stabilised NOI of RM44.0 million incorporates the potential impact of Shell Malaysia Trading Sdn Bhd’s (Shell) tenancy expiry in October 2028, assuming partial backfilling of the vacated space by new tenants. Even under this scenario, the LTV ratios remain consistent with the applicable rating benchmarks. At the current outstanding issuance of RM260 million, the transaction retains a modest cushion against downside stress scenarios. Rollover risk on the CP is mitigated by committed investor support, while refinancing risk on the MTN is moderated by the two-year tail period between expected and legal maturity.
Menara Shell’s NOI decreased to RM39.2 million in 2025 from RM42.5 million in 2024 due to the expiry of a key tenancy in May 2024. Nevertheless, occupancy improved to 88% as at end-2025 from 82% in 2024 following the successful leasing of part of the vacated space. Together with the increase in the average rental rate to RM7.56 psf from RM6.96 psf, this is expected to support stronger NOI generation from 2026.
Tenant concentration remains a key rating constraint, with Shell occupying 54.7% of the building’s NLA under a lease that expires in October 2028. Any non-renewal would materially weaken occupancy and cash flow. However, this risk is partly mitigated by Menara Shell’s prime KL Sentral location, Sentral REIT Management’s leasing capabilities, and the asset’s Grade A office quality, which should support its competitiveness amid the oversupply in the Klang Valley office market.