KUALA LUMPUR: The Malaysian Rating Corporation Bhd (MARC) has affirmed its MARC-2IS rating on Bina Darulaman Bhd's (BDB) RM100 million Islamic Commercial Papers (ICP) programme for the fifth consecutive year.
BDB acting president and group chief executive officer Mohd Iskandar Dzulkarnain Ramli said MARC's review validated BDB's management strategy and execution in creating a sustainable business model for the company and generating long-term value to shareholders.
"BDB's execution and delivery of its turnaround plan – which was conceived to address extremely harsh operating conditions as a result of the Covid-19 pandemic – is the primary reason why the group has emerged on a sound financial and operational footing in 2022," he said in a statement today.
In its latest rating review issued in August 2022, the rating agency said the review incorporated BDB's available landbank for property development, adequate liquidity to meet short-term operational and financial commitments, stable revenue stream from road maintenance contracts and increases in its construction order book.
MARC also cited BDB's status as a Kedah state-owned entity, which placed it in a good position to be able to secure state construction contracts, as a key rating consideration.
It added that long-term rating could be upgraded if there was a significant improvement in the scale of operations and profitability while maintaining a moderate leverage position.
Iskandar said the company was committed to continued re-balancing and optimisation of business operations in ensuring its continuity and resilience.
"Our resilience, focus and determination have demonstrated what the Group will be able to achieve as we emerge from the pandemic into more favourable business conditions.
"The normalisation of supply chains and the resumption of business as usual operating conditions will address the pent-up demand for goods and services.
"BDB's core businesses – property development and engineering, construction and quarrying (ECQ) – are well-placed to maximise business opportunities in this improving business climate.
"BDB's property division will focus on unlocking the potential value of its landbank by developing existing townships and building new affordable housing townships together with its partners.
"At the same time, ECQ will continue to reinforce its stable revenue streams from ongoing state road maintenance projects and improving demand for its quarrying operations," he said.
Looking into 2023, Iskandar said BDB aimed to secure contracts and new business opportunities outside Kedah in order to improve its risk profile.
"This will be achieved by the group's ongoing commitment to robust analysis and decision-making processes with regards to project investment and operational delivery," he added.
