RAM Ratings reaffirms AA3/Stable rating of Besraya's sukuk

Published on 21 October 2015

RAM Ratings has reaffirmed the AA3/Stable rating of Besraya (M) Sdn Bhd’s (the Company) RM700 million Sukuk Mudharabah Issuance Facility (2011/2028). Besraya is the toll concessionaire for the 16.6-km Sungai Besi Highway and the 12.3-km Besraya Eastern Extension (BEE). The rating reflects Besraya’s strong debt- coverage levels, backed by its improved traffic profile due to the BEE’s connectivity.
Both Besraya’s toll plazas outperformed our sensitised projections in FY Mar 2015, with the Mines plaza registering an average daily traffic (ADT) of 96,071 vehicles while the Loke Yew plaza’s reading came in at 39,212 vehicles. Moving ahead, we expect traffic growth to be moderated by the recently announced toll rate hike at the Mines toll plaza effective October 2015 as well as potential traffic diversions following the opening of the Maju Expressway’s Seri Kembangan interchange in 2016.
We expect Besraya to generate an average pre-financing cashflow of about RM74 million throughout the Sukuk’s tenure, thereby allowing the Company to achieve a robust finance service coverage ratio of 2 times (with cash balances, post-distribution). We have assumed Besraya priorities its debt coverage profile ahead of annual distributions to shareholders.
As with other toll-road projects, Besraya is inherently exposed to regulatory and single-project risks.

Media contact
Ong Ju Laine
(603) 7628 1183
julaine@ram.com.my