MARC Ratings has affirmed its AAAIS rating on Amanat Lebuhraya Rakyat Berhad’s (ALR) RM5.5 billion Sukuk Programme, with a stable outlook.
The rating is supported by ALR’s portfolio of mature toll road assets, which have demonstrated stable and predictable traffic performance over more than two decades. MARC Ratings views traffic volume risk as low, given the highways’ established operating history and proven ability to generate stable cash flow, underpinning strong credit metrics and debt-servicing capacity. The sukuk transaction’s zero-dividend structure further supports cash flow retention, strengthening the prospects for sukuk redemption at the first call date in the financial year ending 31 March 2034 (FY2034).
ALR’s portfolio comprises Lebuhraya Damansara–Puchong (LDP), Shah Alam Expressway (KESAS), Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT) and Stormwater Management and Road Tunnel (SMART). The three core highways — LDP, KESAS and SPRINT — generated about 98% of traffic volume and 97% of toll revenue in FY2026 and 3MFY2027, underpinning the portfolio’s resilient traffic profile. Traffic fluctuations remained limited, with peak-to-trough variations ranging from 2% to 9% between FY2023 and 3MFY2027. In contrast, SMART recorded greater volatility, with a 17% variation over the same period, and contributed only about 2.5% of toll revenue.
Operating and financial performance remained resilient. The portfolio’s average daily traffic was broadly stable at about 1.01 million vehicles in FY2026 and 3MFY2027. Toll revenue rose to RM827.2 million in FY2026 and is projected to remain strong at approximately RM839 million in FY2027. Cash flow from operations (CFO) increased to RM815.2 million in FY2026, while CFO interest and debt coverage ratios remained adequate at 3.1x and 0.12x, respectively. Total borrowings declined to RM4.805 billion as at end-June 2026 from RM5.165 billion as at end-March 2025 following a RM360 million sukuk principal repayment in October 2025. Coupled with higher shareholders’ funds, the debt-to-equity ratio improved to 5.8x.
Liquidity remained robust, with cash balances increasing to RM1.27 billion as at end-March 2026, exceeding the base-case projection of RM1.20 billion, before rising further to RM1.32 billion as at end-June 2026. The finance service coverage ratio (FSCR) strengthened to 3.04x in FY2026 from 2.74x in FY2025, above the projected 2.94x. Under MARC Ratings’ sensitised case, which assumes zero traffic volume and higher operating costs, the minimum projected FSCR for FY2027–FY2038 remains strong at 3.12x, well above the 1.5x covenant threshold.