RAM Ratings Services Bhd has reaffirmed its negative outlook for Binariang GSM Sdn Bhd’s senior sukuk and junior sukuk ratings.

Sukuk are also referred to as “Islamic bonds” and “Shariah Bonds.”

Binariang GSM Sdn Bhd  is an investment holding company with interests in telecommunications company Maxis Bhd and Aircel Ltd – India’s seventh largest mobile operator – and PT Axis Telekom Malaysia, the fifth largest mobile operator in Indonesia.

RAM Ratings said the negative outlook reflects its continuing concerns on the further deterioration of the group’s financial metrics, which are intensified by Aircel’s persistently weak performance.

If the details and timing of the corporate restructuring are not adhered to, and there is no significant improvement in the group’s financials, then its sukuk ratings could suffer from severe downward pressure.




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