RAM Ratings has revised the outlook on Konsortium ProHAWK Sdn Bhd's (ProHAWK or the Company) RM900 mil Islamic Medium-Term Notes Programme (2013/2033) (the IMTN) from stable to negative, and reaffirmed its AA2 rating. 

ProHAWK holds the concession to design, construct, commission and maintain Hospital Tunku Azizah (HTA), formerly known as the Women and Children Hospital Kuala Lumpur. The negative outlook reflects potential temporary liquidity shortfalls which may affect the Company's ability to meet required minimum Finance Service Reserve Account (FSRA) balances and maintain a Finance Service Coverage Ratio (FSCR) of at least 1.50 times under our stressed cashflow projections. 

Since the start of Asset Management Services (AMS), ProHAWK had incurred additional operational expenses of approximately RM6 mil annually owing to the widening scope of ICT operations and maintenance services (OMS) than originally provided for under the concession. Compensation for the additional scope of work has yet to be received as Government approval of the sum is still pending. Owing to lower than expected cashflow generation, there will be a temporary breach of the transaction's minimum required FSRA balances and FSCR levels to sustain the AA2 rating should there be delay in additional concession payments by the Government. 

In the interim, we expect UEM Group Berhad, as the Company's major shareholder, to continue to provide liquidity support to bridge the revenue shortfalls, as and when needed. UEM's support underpins the affirmation of the issue rating. A standby letter of credit (SBLC) of RM25 mil procured by UEM currently addresses a shortfall in the minimum FSRA balance. As the SBLC expires at end-March 2022, we have not factored it into our rating assessment. As of 3 February 2022, ProHAWK has received all payments outstanding with regards to Availability Charges and AMS Charges for the months of August to December 2021. Lower compensation of ICT OMS revenue and/or fu