Posted Date: August 26, 2021
MARC notes MEX II Sdn Bhd received sukukholders’ approval on August 24, 2021 for the deferment of payments of RM68.7 million and RM38.2 million due on August 27, 2021 and October 29, 2021, both to December 31, 2021. The rating agency understands that discussions are ongoing on the company’s debt restructuring.
MEX II has an outstanding RM1.3 billion Sukuk Murabahah Programme and RM150.0 million Junior Bonds, proceeds of which has been utilised for the 16.8-km Lebuhraya Putrajaya-KLIA highway project (MEX Extension). The construction remains stalled. We view the payment deferment as a short-term relief to MEX II and does not resolve the company’s significant fiscal stress. The ratings on the company’s aforementioned programs remain at CIS/C.