MARC Ratings has upgraded its rating on FGV Holdings Berhad’s Sukuk Murabahah Programme of up to RM3.0 billion to AAAIS from AA-IS. The outlook on the rating is stable. The current outstanding under the programme stood at RM1.45 billion as at end-July 2026.
The rating upgrade is premised on MARC Ratings’ reassessment of the likelihood of support from FGV’s parent, the Federal Land Development Authority (FELDA). This follows the completion of the privatisation of FGV by FELDA, a government-owned entity, in August 2025. FELDA now has full control over FGV, enabling closer strategic, operational and financial integration.
The reintegration of FGV into the larger FELDA group would facilitate the execution of the authority’s long-term transformation while furthering its socioeconomic agenda. The rating agency views that FELDA has a strong interest in safeguarding FGV’s commercial viability and long-term success, given the latter’s importance in supporting FELDA’s ability to meet its obligations under the Land Development Act 1956.