Zetrix AI Sukuk Rating, Liquidity, and Governance a Concern

KUALA LUMPUR, Oct 18 – MARC Ratings has downgraded Zetrix AI Bhd’s Islamic medium-term notes (IMTN) programme rating to BB+IS from AA-IS, citing increasing financial and liquidity pressures, governance concerns and the risk of a covenant breach.

The rating on the company’s RM2 billion IMTN programme remains on MARCWatch Negative, signalling the possibility of further downgrades if key concerns remain unresolved.

According to MARC Ratings, Zetrix AI’s credit profile has deteriorated significantly since its last review in October 2025, with previously identified risks persisting and intensifying. A key concern involves founder Wong Thean Soon’s reduced shareholding, which resulted in him no longer being the company’s largest shareholder, potentially breaching a covenant under the sukuk programme’s trust deed.

Zetrix AI

The trustee confirmed the potential breach on Oct 16, with the company given until Oct 22 to address the matter. MARC said the development increases uncertainty over possible actions by sukukholders.

The agency also highlighted concerns over Zetrix AI’s ability to secure funds for debt repayment, noting that its proposed Nasdaq listing through a merger with a special purpose acquisition company could be delayed until early 2027.

Additional uncertainty stems from the appointment of new external auditors, whose review could affect reported earnings, asset values, equity levels and overall financial strength.

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