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+(bg) 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 sums. 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 improvement in traffic volume at both the Kerinchi and Damansara links in FY2004 and the overall traffic volume is expected to be enhanced by the contribution from Penchala link which opened in March 2004, six months ahead of schedule. Furthermore, construction risk is eliminated with the completion of the Penchala link. Moderating the above strengths are the uncertainties surrounding the long-term traffic growth and toll sensitivity of road users which will affect SPRINT’s debt repayment ability.


For FY2004, traffic volume on the SPRINT highway reached 35.0 million vehicles (FY2003: 30.2 million), contributed by Damansara link: 21.4 million (FY2003: 19.5 million) vehicles; Pantai toll plaza: 13.4 million vehicles (FY2003: 10.7 million) and the newly opened Kiara toll: 0.24 million vehicles (since March 2004). As at to date, FY2005 traffic numbers outperformed that of FY2004. SPRINT has forecasted that traffic volume shall reach 47 million vehicles for FY2005.

FY2004 marked the third full year of tolling at the Damansara and Pantai tolls. The full year revenue from Penchala link will be included from FY2005 onwards as tolling only commenced in March 2004. Tolling revenue from the existing tolls increased by 19% to RM52.23 million in FY2004 on the back of increased traffic. Despite the improvement in traffic volume and revenue, SPRINT has yet to meet its projected figures. A loss before tax of RM7.06 million was registered after a turnaround in FY2003 due to the increase in the amortisation of the Highway Development Expenditure Account.

The heavy burden of the interest and principal repayments on its debt obligations can be improved significantly if the repayment profile is reconstructed to match the actual traffic revenue either through a refinancing exercise or other contingency plans.