MAG secures top sukuk ratings to fund fleet, network expansion

KUALA LUMPUR: Malaysia Aviation Group Bhd (MAG) has secured the highest ratings from MARC Ratings for its proposed Islamic Commercial Papers (ICP) and Islamic Medium-Term Notes (IMTN) programmes, as the national aviation group advances its fleet, network and infrastructure expansion plans.

The group said MARC Ratings assigned ratings of MARC-1IS and AAAIS to the proposed programmes, marking its first credit rating assessment by the agency.

MAG said the ratings reflected its operational performance, financial discipline and continued execution of its Long-Term Business Plan 3.0 (LTBP3.0).

The proposed sukuk programme is among the financing options being considered to support the group's next phase of growth, including investments in fleet modernisation, network expansion and infrastructure development.

These include the development of a new in-flight catering facility, as well as efforts to expand its technical maintenance, repair and overhaul (MRO) capabilities.

MAG president and group chief executive officer Captain Nasaruddin A. Bakar said the ratings supported the group's strategic direction as it planned for growth beyond 2030.

"Our trajectory under LTBP3.0 is guided by sound financial planning, operational rigour and clear commercial priorities.

"We remain focused on pursuing growth in a measured way, including enhancing our network and in-flight services and scaling our technical MRO capabilities," he added.

He added that the investments would also support Malaysia's ambition to become a leading regional aerospace hub and strengthen the country's aviation ecosystem.

MAG, the parent company of Malaysia Airlines Bhd, said it would continue to maintain strict financial governance and appropriate market disclosures as it implements its growth plans.