Asiaâ€™s first covered Sukuk issued by MBSB, assigned AA1 rating by RAM Ratings
RAM Ratings has assigned a final AA1/stable rating to Malaysia Building Society Berhad’s (MBSB) MYR 495 million Tranche 1 Structured Covered Sukuk (Tranche 1 Sukuk). Tranche 1 Sukuk is MBSB’s first issuance under its MYR 3 billion Structured Covered Sukuk Commodity Murabahah Programme. Notably, this covered Sukuk is the first of its kind in this region and also in Malaysia. Under the transaction, the Sukuk is supported by a portfolio of securitised assets. The transaction may be considered a form of covered bond as the Sukuk holders have dual recourse, first to the issuer (when solvent), and then to a pool of securitised assets (upon the issuer’s default).