MARC has reaffirmed the rating of KLSSB’s Tranche 1 BaIDS of RM120 million at A-ID (Single A minus Islamic Debt). The rating is, however, placed on MARCWatch with negative implications, reflecting MARC’s heightened concerns of KLSSB’s ability to collect the remaining billings from Promising Quality Sdn Bhd (PQSB) prior to the maturity of Tranche 1 BaIDS in April 2003. KLSSB is taking steps to address this issue, which MARC will be monitoring to assess the impact on the rating.

The ratings for Tranches 2A, 2B, 3, 4A & 4B BaIDS totalling RM800 million remain unchanged at AID(s) (Single A Islamic Debt, with support), reflecting the support provided by Bank Pembangunan & Infrastruktur Malaysia Berhad by way of standby revolving credit facility.

Under a 1997 Concession Agreement, Kuala Lumpur Sentral Sdn Bhd (KLSSB) was awarded the design and construction of the Stesen Sentral Kuala Lumpur on railway reserve land formerly known as the ‘Brickfields Yard’. In return, the company was granted the right to commercially develop the balance 62 acres of freehold land (including approximately 2 acres of land to be developed for infrastructure purposes). Stesen Sentral serves as a transportation hub; providing terminals for the commuter and inter-city trains, Light Rail Transit system and the airport express rail network. Construction of the station was completed in December 2000 and the station commenced operation in April 2001.