RAM Ratings affirms AAA(s) sukuk ratings of Khazanah's funding conduits 

RAM Ratings has affirmed the ratings of Islamic securities issued by the funding conduits of Khazanah Nasional Berhad (Khazanah or the Company) - the investment arm of the Government of Malaysia - as listed below: 

Issuer	                                                           Facility                                             Rating/Outlook                                                                                         
Rantau Abang Capital Berhad	RM7.0 bil Islamic Medium-Term Notes (MTN) Sukuk Musyarakah Programme (2006/2041)	AAA(s)/Stable
Danga Capital Berhad	        RM10.0 bil Islamic Securities Programme (2009/2044)	                                AAA(s)/Stable
Ihsan Sukuk Berhad	        RM1.0 bil Islamic MTN Sukuk Ihsan Programme (2015/2040)	                                AAA(s)/Stable
Danum Capital Berhad	        RM20.0 bil Islamic MTN Sukuk Danum Programme (2019/2069)	                        AAA(s)/Stable

The suffix (s) indicates that the issue ratings have been enhanced beyond their standalone credit strength, based on Khazanah's contractual obligation to cover any shortfall faced by the conduits in meeting expected income distributions and capital returns on the sukuk at maturity or upon the occurrence of a dissolution event.

The rating affirmations reflect Khazanah's integral role in supporting the government through the management of strategic assets and promotion of new economic growth areas with a significant socio-economic impact. Our view that Khazanah's credit strength aligns with the government's is anchored on its vital link to the latter and the anticipated extraordinary and timely support it will receive, if in distress. The Company's recent initiatives, including the acquisition of Malaysia Venture Capital Management Berhad and Penjana Kapital under the Dana Impak programme, and the establishment of the National Funds of Funds, are in keepinge