Moody's rates Malaysia sukuks A3

Moody's Investors Service said it assigned a senior unsecured rating of A3 to the proposed dollar-denominated trust certificates or sukuks with maturities of 10 and 30 years to be issued by Malaysia Wakala Sukuk Bhd., a special purpose vehicle established by the government of Malaysia.

The sukuks’ A3 rating is at the same level as the long-term local-currency and foreign-currency issuer ratings of Malaysia’s government, the agency said. The sukuks will rank equally with Malaysia’s other senior obligations.

The proceeds will be used to buy a Wakala asset pool consisting of vouchers representing travel entitlements on selected public transport in Malaysia. Malaysia’s government will manage the assets as the agent for the provision of Wakala services on behalf of the issuer, acting as trustee for the certificate holders. The government will collect all returns on the portfolio assets against the relevant periodic distribution amounts due, Moody’s said.

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