MARC has removed the issue ratings of all toll road concessionaires in its universe from MARCWatch Developing where they had been placed since May 30, 2018 due to heightened uncertainty on the toll road sector pending clarity on the abolishment of toll road charges. The removal of the ratings from MARCWatch Developing reflects that the imminent risk to the toll road sector arising from any resolution on tolling issue has been substantially reduced after the government indicated that any plan to abolish toll road charges has now been put on hold.

Nonetheless, MARC remains concerned that the prevailing uncertainty on the toll road sector could linger as the government considers various options to resolve the tolling issue. Coupled with the concern on the outcome of the looming toll hikes rescheduled in 2019/2020, where any toll hike deferrals without timely government compensation could impact the cashflows of toll road concessionaires, MARC has attached a negative outlook on the ratings of the toll road concessionaires in its universe.

The rating agency will continue to monitor developments in the toll road sector, assessing the impact to take appropriate rating actions on the toll road concessionaires. The list of MARC-rated toll concessionaires is shown below:

Toll concessionaire	Issue	Rating
Grand Sepadu (NK) Sdn Bhd	RM210.0 million Sukuk Murabahah	AA-IS
Cerah Sama Sdn Bhd	RM750.0 million in nominal value IMTN (Sukuk) Programme	AA-IS
Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd	RM2.3 billion IMTN Programme (Sukuk Musharakah) RM180.0 million Redeemable Secured Junior Bonds	AA-IS A-
Sistem Penyuraian Trafik KL Barat Sdn Bhd	RM510.0 million BaIDS	A+ID
ANIH Berhad	RM2.5 billion Senior Sukuk Musharakah Programme	AAIS
Senai-Desaru Expressway Bhd	RM1.89 billion IMTN Programme	BBB-IS
Projek Lebuhraya Usahasama Bhd	RM23.35 billion Sukuk Musharakah Programme	AAAIS
MEX II Sdn Bhd	RM1.30 billion Sukuk Murabahah Programme RM150.0 million Junior Bonds	AA-IS A-
Lebuhraya Duke Fasa 3 Sdn Bhd	RM3.64 billion in nominal value Sukuk Wakalah	AA-IS
Projek Lintasan Sungai Besi - Ulu Klang Sdn Bhd	RM2.0 billion Sukuk Wakalah Programme RM500.0 million Danajamin-Guaranteed Facilities	A+IS(s) AAAIS(fg)

Contacts:
Lim Chi Ching, +603-2717 2963 / chiching@marc.com.my;
David Lee, +603-2717 2955/ david@marc.com.my