MARC Ratings has affirmed its AA-IS rating with a stable outlook on Quantum Solar Park (Semenanjung) Sdn Bhd’s (QSP Semenanjung) outstanding RM605.0 million Green Sustainable and Responsible Investment (SRI) Sukuk.

QSP Semenanjung owns and operates three 50MW solar power plants located in Gurun, Kedah; Jasin, Melaka; and Merchang, Terengganu.

The rating is supported by QSP Semenanjung’s diversified portfolio of solar power assets and its long-term power purchase agreements (PPAs) with Tenaga Nasional Berhad (TNB). The 21-year PPAs provide strong cash flow visibility through fixed tariffs and contracted energy volumes, helping to reduce exposure to fluctuations in electricity demand and pricing.

In 2025, QSP Semenanjung’s total energy output exceeded P90 projections by 1.11%. The Gurun and Jasin plants recorded generation above P90 estimates by 2.73% and 2.99% respectively, while the Merchang plant recorded output 2.40% below P90 due to planned restoration works following the December 2024 flooding event.

Following the flooding incidents at Merchang, mitigation measures were implemented, including elevated mounting structures, enhanced drainage systems and the installation of four water pumps. No further flooding incidents were reported in 2025 after these measures were put in place.

Supported by higher energy generation, QSP Semenanjung’s revenue increased to RM137.4 million in 2025, compared with RM135.2 million in 2024. Operating cash flow remained strong at RM106.6 million, while liquidity remained stable with cash balances of RM118.8 million as at end-March 2026.

MARC Ratings projects an average finance service coverage ratio of 2.40x, with a minimum of 1.95x over 2026 to 2035. The rating agency also noted that cash flows remain resilient under moderate stress scenarios, including lower plant availability, higher operations and maintenance costs, and lower electricity generation.

The stable outlook reflects expectations of continued steady plant operations and stable financial performance.