In January 2021, Stealth Solutions Sdn Bhd (SSSB) issued its first sukuk through Cellco Capital Berhad, a special-purpose vehicle, amounting to RM520 million. The issuance is backed by 531 telecommunication structures generating consistent revenue from telcos.
The RM520 million issuance received preliminary MARC-1IS/AAIS ratings with a stable outlook from the credible rating agency, MARC Ratings Berhad (MARC). The ratings reflect SSSB’s strong cash flow visibility, supported by long-term lease agreements with telco players, and increasing demand for telecommunication towers. The stable outlook is based on expectations of steady lease payments and a robust average finance service cover ratio (FSCR) exceeding 2.0x.
Other key factors supporting the ratings include an impressive tenancy ratio of 1.5x. The stable business model is further strengthened by low counterparty risk, with major players such as Maxis and CelcomDigi contributing 56% of the rental income.
At the end of 2021, MARC conducted another rating assessment, and SSSB received the same rating, confirming that all terms and conditions remained materially consistent with the preliminary assessment conducted earlier in 2021.
For additional information: MARC assigns final ratings of MARC-1IS/AAIS to Cellco’s sukuk issuance
