RAM Ratings has assigned respective long- and short-term ratings of AAA/Stable and P1 to Pengurusan Air Selangor Sdn Bhd's (Air Selangor or the Company) Islamic Medium-Term Notes Programme of up to RM10 bil in nominal value and Islamic Commercial Papers Programme of up to RM10 bil in nominal value. Both facilities have a combined limit of RM10 bil in nominal value and are collectively referred to as ''the Sukuk''. Under both facilities, Air Selangor may also opt to issue SRI Sukuk Kelestarian that complies with its Sustainable Development Sukuk Kelestarian Framework, which has been reviewed by RAM Sustainability Sdn Bhd.
Air Selangor became the sole licensee for water treatment and distribution to consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya effective 13 September 2019 after obtaining the individual licence granted to it under the Water Services Industry Act 2006. The Company is wholly owned by Selangor's investment arm, Air Selangor Holdings Berhad (formerly known as Kumpulan Darul Ehsan Berhad), while its ultimate shareholder is Menteri Besar Selangor (Incorporated) (MBI Selangor).
Based on RAM's rating methodology for government-linked entities, Air Selangor is considered a ''dependent'' entity as it has been tasked with the public policy role of providing essential water services. The ratings are supported by our expectation that the Company will continue to derive substantial financial flexibility from the Selangor state government, given the pivotal role it plays in the state's water sector. The state has also been providing various forms of support to Air Selangor, such as through the extension of loans and grants for the Company's capital expenditure and development purposes. As such, we have equated the Sukuk ratings of Air Selangor to that of the state. Selangor's state implicit strength (SIS) is assessed to be robust the highest category in RAM's SIS Framework.
Apart from the 100%-ownership, the state gover