S&P rates Serba Dinamik sukuks BB-

S&P said it assigned a preliminary BB- long-term issuer credit rating to Serba Dinamik Holdings Bhd., along with a preliminary BB- rating to the proposed sukuk trust certificates that the company guarantees.

The outlook is stable

Serba Dinamik has modest scale with commoditized service offerings, limited record compared with peers with large-scale project execution, large investment needs and somewhat untested asset acquisition strategy of growth, S&P said.

Its record of timely and within-budget project execution, respectable client base, good cost control, short history of equity raising and investments temper some of the rating constraints, the agency said.

The company is expected to continue to renew expiring contracts and win new contracts at a healthy rate, S&P said.

The agency said it assumes the company will manage prudently its capital expenditure for growth and its working capital investment.

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