KUALA LUMPUR (Nov 12): Malaysian Rating Corp Bhd (MARC Ratings) has maintained its AA-IS rating on MMC Port Holdings Bhd's Sukuk Murabahah Programme, which has been upsized to RM2 billion from RM1 billion, with the outlook remaining stable.
Proceeds from immediate issuances under the enlarged programme will be used to fund group investments, MARC Ratings said in a press announcement dated Nov 10.
The rating is underpinned by MMC Port's strong credit profile, supported by the consolidated performance of its portfolio of mature ports in Peninsular Malaysia, including Port of Tanjung Pelepas and Johor Port in Johor, Northport in Selangor and Penang Port in Penang.
MARC Ratings noted that MMC Port had been generating strong and steady dividend income from its key port operators.
For the first half of 2026 (1HFY2026), MMC Port recorded revenue of RM2.9 billion, up from RM2.3 billion in the corresponding period a year earlier. Its operating profit margin improved to 38.7% in 1HFY2026, from 31.1% 1HFY2025.
Its consolidated cash flow from operations rose to RM1.2 billion from RM800 million in 1HFY2025, with interest and debt coverage ratios of 11.27 times and 0.38 times, respectively.
The rating announcement comes after MMC Corp reportedly instructed advisers in August to halt work on the proposed listing of its port business, MMC Port, on Bursa Malaysia's Main Market. The development came amid concerns over the lofty valuation sought for MMC Port.
The IPO could have raised about US$2 billion (RM8.5 billion), with the proceeds going to MMC Corp, which is controlled by businessman Tan Sri Syed Mokhtar Al-Bukhary.
Bloomberg reported in June that other Asian businesses and infrastructure-focused funds have been approached for a minority stake in MMC Port. Syed Mokhtar may seek a valuation of more than US$10 billion for the whole business, according to the report citing unnamed sources.
MMC Port also runs the Andaman Port in Kedah and three cruise terminals in Malaysia.
The IPO had been initially targeted for the fourth quarter of 2025 before being pushed back to 2026.
Any future attempt to list MMC Port, Malaysia’s largest container port operator, will require a fresh application and a complete restart of the regulatory process.
CIMB Investment Bank was the principal adviser, joint global coordinator, joint bookrunner, sole managing underwriter and joint underwriter. HSBC was also the joint global coordinator and joint bookrunner.
AmInvestment Bank, Bank Muamalat Malaysia, CGS International, CLSA, Jefferies, Kenanga Investment Bank, Maybank Investment Bank and RHB Investment Bank were the joint bookrunners