MARC Ratings has revised its rating outlook on Sinar Kamiri Sdn Bhd’s outstanding RM170.0 million ASEAN Green Sustainable and Responsible Investment (SRI) Sukuk Wakalah to positive from stable. Concurrently, the AA-_IS rating on the Sukuk Wakalah has been affirmed. The rating agency will upgrade Sinar Kamiri’s rating within the next 6–12 months provided the current projected operational performance trajectory is maintained.

Sinar Kamiri, a wholly-owned subsidiary of Mudajaya Group Berhad, owns and operates a 49.0MW solar power plant, located in Sungai Siput, Perak. Since achieving commercial operation date (COD) in November 2018, the plant has not faced any operational hitches and has been able to maintain a strong buffer against the covenanted finance service coverage ratio (FSCR) of 1.5x. As at end-2024, FSCR stood at 2.8x. Under sensitised cash flow projections from 2025 to 2037, MARC Ratings forecasts a minimum and average FSCR of 2.56x and 2.92x.

Operationally, the plant continues to perform well, as evident from its high average plant availability factor of 99.2% since COD, reflecting Sinar Kamiri’s operational expertise. The plant’s performance has also been supported by favourable solar irradiance at the site. In 2024, the plant’s energy production exceeded the P90 forecast by 9.5%, translating into revenue of RM34.9 million, which was 6.2% higher than initial estimates. The stronger-than-expected performance has resulted in a healthy liquidity level; Sinar Kamiri’s cash balance stood at RM42.3 million as at end-2024.

The rating also factors in the strength of Sinar Kamiri’s 21-year power purchase agreement with Tenaga Nasional Berhad (TNB, AAA/Stable) for the offtake of solar power up to a certain amount at a fixed tariff.