MARC has withdrawn its AA-IS and A- ratings on Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd's (Kesturi) RM820 million Sukuk Musyarakah Medium Term Notes Programme (Senior Sukuk) and RM50 million Redeemable Junior Bonds (Junior Bonds) respectively upon full early redemption of the outstanding notes.

The outstanding Senior Sukuk and Junior Bonds were fully refinanced with new issuances under a RM2.3 billion Islamic Medium Term Notes Programme and RM180 million Redeemable Secured Junior Bonds on December 2, 2013 in conjunction with the new project financing raised to part-finance the extension of the Duta-Ulu Kelang Expressway (refer to MARC’s announcement on September 20, 2013 and November 21, 2013). Going forward, MARC’s rating surveillance will be limited to the Islamic Medium Term Notes Programme and Redeemable Secured Junior Bonds which are rated AA-IS and A- respectively; the outlook for the ratings is stable.

Kesturi is the concessionaire and toll operator of the Duta-Ulu Kelang Expressway which currently comprises 18 kilometres of dual four- and three-lane carriageways linking east and west Kuala Lumpur.

Contacts:
Koh Shu Yunn, +603-2082 2243/ shuyunn@marc.com.my;
Ng Chun Kean, +603-2082 2230/ chunkean@marc.com.my;
David Lee, +603-2082 2255/ david@marc.com.my.