Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has welcomed credit ratings that MARC Ratings assigned to its proposed Islamic financing programmes, saying they reflect steady operating performance and financial discipline.

MARC Ratings assigned MARC-1IS and AAAIS to MAG’s proposed Islamic Commercial Papers and Islamic Medium-Term Notes programmes, together called the Sukuk Programme, according to a MAG statement on Monday. The group said this is its first credit rating from MARC Ratings and that the ratings sit at the agency’s highest possible level on its scale.

MAG said the assessment reinforces its position as the parent of Malaysia Airlines Berhad and what it called Malaysia’s premier integrated aviation services provider. It also said the ratings reflect confidence in the group’s long-term direction, supported by strong alignment with its majority shareholder, Khazanah Nasional Berhad.

The group said it is pursuing projects to build capacity and accelerate commercial expansion under its Long-Term Business Plan 3.0 (LTBP3.0). These include investment in fleet modernisation, network growth and new infrastructure such as a new in-flight catering facility. MAG said it regularly looks at different ways to raise capital for these projects, including the proposed Sukuk Programme, in line with its long-term financial plan.

Nasaruddin said the group’s direction under LTBP3.0 is guided by sound financial planning, operational rigour and clear commercial priorities, and that MARC Ratings’ rating supports its strategy as it plans beyond 2030. He said MAG remains focused on “pursuing growth in a measured way”, including improving its network and in-flight services and expanding its technical maintenance, repair and overhaul (MRO) capabilities. He added that the investments also support Malaysia’s ambition to become a leading regional aerospace hub.

MAG said it will keep strict fiscal governance and make appropriate market disclosures as it carries out its growth plans.

Source: PR