MARC affirms its rating on BDB’s RM100m ICP programme for 4th consecutive year
MALAYSIA Rating Corp Bhd (MARC) has affirmed its MARC-2IS rating on Bina Darulaman Bhd’s (BDB) RM100 million Islamic Commercial Papers (ICP) programme for the fourth year in running.
BCB president and group CEO Faris Najhan Hashim said the MARC report effectively validated BDB’s management strategy and execution to create a sustainable business model for the company and generate long-term value to shareholders.
“As a result of its ongoing restructuring strategy towards long-term sustainable business profitability, BDB has realigned its core businesses into two core divisions, namely, its Property Development division and its Engineering, Construction and Quarry division.
“This approach to consolidate resources and focus on the group’s core competencies has paid off and has proved to be crucial to the group’s improved financial performance and competitiveness in 2020 and 2021,” he said in a statement following the rating affirmation.
He added that the setting of strategic policy and direction by BDB’s board of directors and the execution and delivery of those policies by the group’s senior management team have been harmonised to ensure the delivery of key company goals and key performance indicators in a challenging business environment.
“The group’s continued re-balancing and optimisation of its core business operations was geared towards ensuring the continuity and resilience of the group as a viable operating entity.
“In order to achieve these outcomes, the board and management of BDB were committed to adopting a robust and independent decision-making process with regards to project investment, one that is based on data, insights and industry experience of the management team,” he said.
He added that the success of the ongoing national vaccination programme, economic re-starting and business activity coupled with robust demand for affordable housing in Kedah would boost BDB’s new growth in its advance towards improved business conditions in the coming time.
The rating agency MARC stated in its latest review issued in Aug 2021 that it incorporated BDB’s competitive strength to undertake public infrastructure and construction contracts in Kedah, as well as its available landbank for property development and adequate cash balances.
It noted that the property developer had continued its turnaround amidst a challenging business environment in the past year despite the pandemic.
THE MALAYSIAN RESERVE | 30 AUGUST 2021