The rating for Sistem Penyuraian Trafik KL Barat Sdn Bhd’s (SPRINT) Al Bai Bithaman Ajil Facility (ABBA) and the short term rating of the Revolving Underwritten facility (RUF) have been reaffirmed at A-ID and MARC-2 respectively. However, the rating of the Bank Guaranteed Serial Fixed Rate Bonds has been upgraded to A based on the A rating given to the consortium of banks providing the unconditional and irrevocable guarantees as to the timely payment of the interest and principal payments. The A rating evaluation is based on a ‘weak-link’ approach. Hence, the bank guaranteed (bg) rating as applied by MARC to the Serial Fixed Rate Bond Facility reflects the enhancement provided by the bank guarantee.

The rating reaffirmation reflects the encouraging traffic volume at both the Kerinchi and Damansara links in FY2003 and overall traffic volume is expected to be enhanced further when the Penchala Link is schedule to open in August 2004. Furthermore, MARC also takes comfort from the conservative projections for both the Damansara and Kerinchi tolls. In addition, construction of Package C (Penchala Link) is almost complete hence further reducing construction risk. Latest indication from the management of SPRINT suggested that construction works on Package C may be ahead of schedule, as early as end-February 2004. Moderating the above strengths
are the uncertainties surrounding the long-term
traffic growth and toll sensitivity of road users.

It was observed that, period on period, actual traffic volume on the SPRINT highway had grown. For comparison purposes, traffic volume for the period between September 2002 and March 2003 was matched against the previous corresponding period. We noted that traffic grew by 11% from 15.8 million vehicles to 17.6 million vehicles. For the current financial year, traffic volume for the first seven months grew by 8.6% reaching 19.3 million vehicles from 17.8 million vehicles in the previous corresponding period. During the said period, traffic on a month-to-month basis exhibited encouraging signs and the healthy trend is expected to maintain going forward. Traffic along the Damansara Link is expected to receive a temporary boost following the closure of the Bukit Lanjan Interchange on the North Klang Valley Expressway for seven months.

FY2003 saw a full year tolling revenue of RM45.75 million, which is expected to grow by 21% to RM55.17 million (inclusive of the amortisation of RM70 million government compensation) in 2004. SPRINT’s cash flow projections based on the actual figures available showed a comfortable debt servicing capacity. Debt leverage has also improved due to the increase in loan stocks. Debt leverage is capped at 2.33x under the issue structure.