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 reflects ALR’s strong operating cash flow from its mature and resilient toll road portfolio in the Klang Valley, and its robust debt service capacity. Solid liquidity and a zero-dividend policy under the transaction terms support ALR’s ability to early redeem the sukuk at the first call date in financial year ending 31 March 2034 (FY2034). These credit strengths are tempered by exposure to traffic volume risk, although this is mitigated by the historically stable traffic patterns observed across ALR’s key highways.
ALR’s road network comprises Lebuhraya Damansara–Puchong (LDP), Shah Alam Expressway (KESAS), Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT), and Stormwater Management and Road Tunnel (SMART). Traffic on LDP, KESAS, and SPRINT has remained stable and resilient, rising 1%–9% in FY2024, 1%–8% in FY2025, and 0.2%–2% in 4MFY2026. The peak-to-trough variation for these highways during FY2019–FY2025 (excluding pandemic-affected periods) was moderate at 2%–18%, while SMART experienced a higher peak-to-trough of 39.7%. However, its impact on ALR’s financials is minimal, contributing to around 3% of revenue in FY2025.
Overall, traffic performance and toll revenue in FY2025 were broadly in line with ALR’s base case cash flow projections. Annual average daily traffic increased 2.4% y-o-y to 1,004,903 vehicles and toll revenue rose 2.9% y-o-y to RM815.8 million. Both average daily traffic and toll revenue continued to grow in 4MFY2026, with traffic reaching 1,009,408 vehicles and annualised toll revenue tracking 2.8% above FY2025.
As of end-FY2025, total borrowings stood at RM5.165 billion. Following the second sukuk principal repayment of RM360 million on 13 October 2025, borrowings declined to RM4.805 billion by end-October 2025. Liquidity remained solid, with RM950.4 million in cash and cash equivalents as at end-October 2025, and the finance service coverage ratio (FSCR) was strong at 2.74x as at end-FY2025. Under MARC Ratings’ sensitised case (assuming a stressed traffic scenario and higher operating costs), the minimum projected FSCR for FY2026–FY2038 is 2.89x, comfortably above the 1.5x covenant threshold.