MARC wishes to highlight that its ratings on MEX II Sdn Bhd’s (MEX II) RM1.3 billion Sukuk Murabahah Programme and RM150.0 million Junior Bonds have been maintained at C_IS/C after the last downgrade on March 26, 2021 on heightened concerns of missing imminent profit payments.

MEX II had sought an extension on the the principal and profit payment that were due on April 28, 2021 in respect of Tranche 1 of the sukuk, and profit payments of Tranches 2 to 14 on April 30, 2021. Sukukholders have now consented to the deferment of payments totalling RM68.7 million by four months to August 27, 2021. Apart from the deferred sum, MEX II has another RM38.2 million due in October 2021.

While the consent provides a short-term finance servicing relief to MEX II and avoids an outright default, it does not alleviate significant concerns on MEX II’s looming funding issues to meet its financial obligations and complete its stalled 16.8-km Lebuhraya Putrajaya-KLIA highway project. MEX II is in continued discussions with certain financial institutions on a sukuk restructuring programme that will incorporate additional funding to complete its stalled highway project.

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