Friday, Mar 26, 2004
MARC has reaffirmed the long term rating of SPRINT’s RM510 million Al-Bai Bithaman Ajil Islamic debt securities and the short term rating of the Revolving Underwritten Facility of up to RM125 million at A–ID (Single A Minus, Islamic Debt) and MARC-2 respectively. The long term rating of SPRINT’s RM365 million Bank Guaranteed Serial Fixed Rate Bonds has been upgraded from A- (Single A Minus) to A(bg) (Single A, bank guaranteed). The rating upgrade is based on the rating given to the consortium of banks providing the unconditional and irrevocable guarantees as to the timely payment of the interest and principal payment. The A rating evaluation is based on a ‘weak-link’ approach.
The rating reaffirmation reflects the encouraging traffic volume at both the Kerinchi and Damansara links in FY2003 while overall traffic volume is expected to be enhanced further following the recent opening of the Penchala Link. Furthermore, MARC also takes comfort from the conservative projections for both the Damansara and Kerinchi tolls and the fact that construction on Package C (Penchala Link) has been completed. However, 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 the current financial year, traffic volume for the first seven months grew by 8.6% to 19.3 million vehicles compared to that in the previous corresponding period. 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 (treated as part of equity). Debt leverage is capped at 2.33x under the issue structure.
The rating reaffirmation reflects the encouraging traffic volume at both the Kerinchi and Damansara links in FY2003 while overall traffic volume is expected to be enhanced further following the recent opening of the Penchala Link. Furthermore, MARC also takes comfort from the conservative projections for both the Damansara and Kerinchi tolls and the fact that construction on Package C (Penchala Link) has been completed. However, 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 the current financial year, traffic volume for the first seven months grew by 8.6% to 19.3 million vehicles compared to that in the previous corresponding period. 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 (treated as part of equity). Debt leverage is capped at 2.33x under the issue structure.