MARC has issued an errata notice pertaining to its recent credit analysis report on Sistem Penyuraian Trafik KL Barat Sdn Bhd’s (SPRINT) debt ratings. MARC has amended Exhibit 22 which details the cash flow projections provided on page 12 and the analysis on the cash flow projections on page 13 of its rating report on SPRINT, published on April 7, 2017. The updated rating report has accordingly been republished on our website.

SPRINT has an outstanding RM458 million Al-Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) and RM13 million Bank-Guaranteed Serial Fixed Rate Bonds on which the respective ratings of A+IS /Negative and AA-(bg)/Stable were announced by MARC on April 6, 2017. Notwithstanding the amendments on the cash flow projections, the BaIDS continue to carry a negative outlook which reflects MARC’s key concern on the decline in SPRINT’s tolled traffic volume. MARC is of the view that the slower-than-expected recovery to pre-toll hike traffic levels could potentially erode the margin of protection afforded to the BaIDS holders in the near term.

MARC will continue to monitor the impact of this development on the cash flow over the next several quarters to resolve the negative outlook in a timely manner.

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