MARC Ratings has affirmed its A+IS(s) and AAAIS(bg) ratings on Projek Lintasan Sungai Besi-Ulu Klang Sdn Bhd’s (PLSUKE) Sukuk Wakalah Programme of up to RM2.0 billion and bank-guaranteed Facilities of up to RM500.0 million. The latter is guaranteed by Bank Pembangunan Malaysia Berhad which carries a financial institution rating of AAA from MARC Ratings. All ratings carry a stable outlook.
PLSUKE is wholly owned by Projek Lintasan Kota Holdings Sdn Bhd (PROLINTAS), an indirect subsidiary of Permodalan Nasional Berhad (PNB). PLSUKE operates the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE), a 24.4-km toll road running from Sri Petaling to Ulu Kelang in the Klang Valley.
The A+IS(s) rating on the Sukuk Wakalah reflects the unconditional and irrevocable corporate guarantee provided by PROLINTAS for full repayment of obligations under the subsidiary’s sukuk facility. PROLINTAS’ rating benefits from a two-notch uplift from ultimate parent support. The rating incorporates MARC Ratings’ expectation of continuing support from PNB as has been demonstrated in the past.
Traffic has generally grown steadily since the opening of SUKE Phase 2 on June 15, 2023, and the Alam Damai Elevated Interchange on October 20, 2023. Total vehicles rose to around 88,099 vehicles/day for full year 2023, from 65,581 vehicles/day between January 1 and June 14, 2023. In 2024 through April 22, the annual average daily traffic rose further to 110,885 vehicles/day. MARC Ratings believes traffic volumes could see additional growth over the medium term, supported by SUKE’s multi-connectivity to major highways and matured catchment areas.
The overall financial risk assessment remains unchanged from MARC Ratings’ previous reviews. The bullet repayment structure of PLSUKE’s Senior Facilities (comprising the Sukuk Wakalah, bank-guaranteed Facilities and the Syndicated Islamic Term Facilities, amounting to RM4.7 billion and due in 2027) presents significant refinancing risk. The rating agency, nevertheless, believes that the risk is mitigated by PLSUKE’s relation to PROLINTAS and PNB, with demonstrated access to both bank funding and capital markets. The long remaining life of the concession (at least 42 years from 2027) should also facilitate refinancing.