RAM Ratings has affirmed the AAA/Stable rating of the RM555 million Senior Notes issued under Glacier Assets Berhad's (Glacier or the Issuer) RM800 million Asset-Backed Medium-Term Notes Facility. 

The rating is anchored by the strong credit profile of Pengurusan Air Selangor Sdn Bhd, which provides counterparty support for payment obligations under the transaction. The notes are backed by the balance of receivables arising from the Termination and Settlement Agreement (TSA) between Air Selangor, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) and Gamuda Water Sdn Bhd. The receivables are amounts owed by SPLASH to Gamuda Water for the supply of treated water as well as the operations and maintenance of Sungai Selangor Water Treatment Plant Phase 3 and the Sungai Selangor Dam. 

Glacier uses fixed annual payments from SPLASH in accordance with the TSA to service the Senior Notes, with Air Selangor ? SPLASH's parent company ? undertaking to cover any missed instalments and default interest. 

Air Selangor fulfils a vital public service role as Malaysia's largest water utility company and the sole water treatment and distribution licence holder for Selangor, Kuala Lumpur and Putrajaya. We view state government support as highly likely if needed, closely aligning the utility's credit strength with the state's financial resilience. Selangor's State Implicit Strength (SIS) is assessed to be 'superior', the highest category in RAM's SIS Framework. 

To date, Glacier has received annual instalments on time. As of end-June 2026, the Issuer held RM10.05 mil in cash, which along with RM173.63 mil in future receivables comfortably covers coupon and principal payments on the outstanding RM127.26 mil of Senior Notes. Transaction expenses stayed in line with expectations.

The transaction includes safeguards that restrict payments to subordinated noteholders until the Senior Notes are fully redeemed and maintains prefunded reserves for expenses and potential ear