MARC has reaffirmed the rating of KLSSB’s tranches 2A, 2B, 3, 4A & 4B BaIDS totaling RM800 million at AID(s), reflecting the support provided by Bank Pembangunan & Infrastruktur Malaysia Berhad (BPIMB) by way of a standby revolving credit facility.

The Tranche 1 BaIDS was fully settled in April 2004.

Kuala Lumpur Sentral’s commercial development is divided into four phases. As at October 2004, the aggregate confirmed sales stood at RM828.2 million, of which RM133.6 million remained uncollected. Improved revenue of RM88.9 million recorded for the first 9 months of 2004, was attributable to sales made from its Plaza Sentral II strata offices, Lot N and Lot L land sales.
Profit after tax for the same period was stated at RM17.4 million; definitely an improved after tax position, considering last year’s loss position (2003: deficit RM49.5 million).

The Pre-tax result is still very much compressed by the high financing costs (related to the BaIDS facility). KLSSB’s cash flow position is expected to improve slightly on the operational side, but remains weak generally in relation to high borrowing costs.

From the sensitivity analysis, the FSCR position is expected to dip below the covenanted 1.25 times in 2007 and 2008 where the principal repayments of RM200 million and RM150 million are scheduled. The support from BPIMB is pivotal in ensuring the timely payment of the remaining BaIDS facility.