MARC has affirmed its AAA rating on Special Port Vehicle Berhad’s (SPVB) asset-backed serial bonds facility. The outlook remains negative.

The affirmed rating takes into account the timely track record of payment of deferred repayment obligations from Port Klang Authority (PKA) to SPVB under the Sale and Purchase Agreement (SPA). The SPA dated November 2002 between Kuala Dimensi Sdn Bhd (KDSB) and PKA was for the purchase of 999.5 acres of land at Pulau Indah for the Port Klang Free Zone (PKFZ) project. The rating also considers the financial support provided to PKA via soft loans by the federal government to meet the deferred repayment obligations.

PKA made its tenth deferred repayment of RM170.0 million to SPVB on June 30, 2016. As at August 1, 2016, the total balance in SPVB’s designated accounts stood at RM44.7 million after redeeming its RM150.0 million Series 10 bond on July 29, 2016. The final principal repayment of RM180.0 million Series 11 bond is due on July 28, 2017.

The negative rating outlook reflects the vulnerability of the outstanding deferred payment from PKA which is reliant on the government’s continued support to meet SPVB’s outstanding debt obligations.

Contacts:
Adib Asilah, +603-2082 2243/ asilah@marc.com.my;
David Lee, +603-2082 2255/ david@marc.com.my.