Skip to content
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
Menu
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
  • Sign In
  • Subscribe
  • Group

    Group

    The MARC Group of Companies comprises MARC Ratings, MARC Solutions, MARC Data and MARC Learning.

    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning

    MARC Ratings

    • Rating Guide
    • Rating Process
    • Rating Symbols & Definitions
    • Rating Methodologies
    • Regulatory
    • Lead Managers

    MARC Solutions

    MARC Data

    MARC Learning

    • Careers
    • Careers
  • Services

    Services

    MARC's subsidiaries each provide distinct product offerings and services.

    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights

    Insights

    Find the vital information you need and stay up to date with the latest news from MARC.

    • Rating Announcements
    • Research & Analysis
    • Views
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Latest@MARC
    • MARC in the Media
    • Latest@MARC
  • Events & CSR

    Events & CSR

    MARC organises a diverse range of events throughout the year to engage with all stakeholders.

    • MARCares
    • Events
    • MARCares
    • Events
  • Contact Us

    Contact Us

    Let's get the conversation started - Get in touch with us!

    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
MARC Online
Subscribe
Menu
  • Group
  • Services
  • Insights
  • Events & CSR
  • Contact Us
Menu
  • Group
  • Services
  • Insights
  • Events & CSR
  • Contact Us
Credit Ratings & Related Assessments
Sustainability- Related Assessments
Economic & Fixed-Income Analysis
Subscriptions
Sustainability- Related Advisory
Debt Advisory
Analytics Consulting Services
Data Analytics
Credit Reporting
Learning Programme

Credit Ratings & Related Assessments

Sustainability- Related Assessments

Economic & Fixed-Income Analysis

Subscriptions

Sustainability- Related Advisory

Corporate & Debt Restructuring Advisory

Analytics Consulting Services

Data Analytics

Credit Reporting

Learning & Customised Programme

  • Insights
  • Rating Announcements
Ratings

MARC Ratings revises Pelabuhan Tanjung Pelepas’ rating outlook to positive

14 April 2022

Access the full report here.

View Reports

Contacts

Taufiq Kamal, +603-2717 2951/ taufiq@marc.com.my
Ummi Kalsom Yaacub, +603-2717 2934/ ummikalsom@marc.com.my
Umar Abdul Aziz, +603-2717 2962/ umar@marc.com.my

MARC Ratings has affirmed its AA-IS rating on port operator Pelabuhan Tanjung Pelepas Sdn Bhd’s Islamic Medium-Term Notes (Sukuk Murabahah Programme) and revised the rating outlook to positive from stable.

The outlook revision factors in PTP’s steadily improving credit profile, reflected by stronger cash flow generation that has led to improvement in debt and interest coverages in recent years. The improvement is on the back of strong container handling growth, reflected by a notable rise in throughput volume and demonstrated resilience to recent economic upheavals brought on by the impact of the pandemic and geopolitical tensions.

PTP’s strong competitive position as a key transhipment container port in the region, underpinned by continued investments in improving port efficiency, remains a key rating driver. Demonstrated support from shareholders MMC Port Holdings Sdn Bhd (70%), and Netherland-based APM Terminals B.V. (30%), both of which have established track records and expertise in port operations, is a rating factor.

Revenue grew sharply to RM1.7 billion in 2021 (unaudited) (2020: RM1.5 billion) on the back of a 13.7% y-o-y growth in container handling volume to 11.2 million twenty-foot equivalent units (TEU). The performance also benefitted from a tariff increase in October 2021. The rebound in global trade since 2H2020 that is expected to continue as the global economy recovers from pandemic-induced closures should drive container demand. Nonetheless, rising geopolitical risk from the Ukraine-Russia war could cloud the prospects for global trade, although PTP has shown resilience to global trade disruptions in the recent past.

Operating profit margin rose to 36.0% (2020 31.8%), reflecting gains in operating efficiency from continued investments in port infrastructure. Completion of capital dredging works in January 2021 to a depth of 18.5m and the usage of Super Post-Panamax cranes for ultra large container vessels have enabled the berthing of the largest container vessel at its port.

MARC Ratings views increased investments in port equipment and terminal vehicles would further enhance efficiency. PTP will expand its container yard and free zone area, and undertake other investments; it has earmarked a capex of RM1.3 billion in 2022-2023 that will be met from internally generated funds. Strong cash flow from operations (CFO), which rose to RM941.6 million in 2021, provides headroom for capex as well as meeting its financial obligations; CFO interest and debt coverages improved to 10.12x and 0.36x (2020: 6.28x; 0.26x).

Borrowings declined to RM2.3 billion as at end-2021 (end-2020: RM2.5 billion) and accordingly debt-to-equity (DE) and net DE ratios were lower at 0.90x and 0.63x (end-2020: 1.02x; 0.74x). In the absence of large borrowing maturities in 2022–2024 and with sizeable cash balances, PTP has strong financial flexibility.

Given the contribution from Maersk and partner Mediterranean Shipping Company (MSC) in the 2M Alliance accounted for more than 70% of revenue and volume in 2021, PTP remains exposed to concentration risk. We view Maersk’s indirect interest in PTP through APM Terminals and the port’s position as the liner’s largest transhipment hub substantially mitigate this risk.

Related Report

Read More

Related Issues

Read More

Related News

Read More

You May Also Like To Read

See All
Ratings

MARC Ratings assigns final ratings of MARC-1IS/AA-IS to UDA’s ICP/IMTN Programmes of up to RM1.0 billion

22 March 2023

Ratings

MARC Ratings revises UiTM Solar's rating outlook to stable

22 March 2023

Ratings

MARC Ratings assigns final rating of A to Singer’s RM300.0 million MTN Programme

22 March 2023

See All

Let’s get started.

Subscribe to our mailing list today

Subscribe Now
Group
  • About MARC
  • Leadership
  • Investor Relations
  • Notable Issuances
  • Careers
Regulatory
  • Rating Reviews Summary
  • List of Defaults
  • List of Credit Ratings Published
  • List of Entities on Rating Watch
Services
  • Credit Ratings & Related Assessments
  • Sustainability-Related Assessments
  • Economic & Fixed-Income Analysis
  • Sustainability-Related Advisory
  • Corporate & Debt Restructuring Advisory
  • Subscriptions
  • Analytics Consulting Services
  • Data Analytics
  • Credit Reporting
  • Learning & Customised Programmes
Subsidaries
  • MARC Ratings
  • MARC Learning
  • MARC Data
  • MARC Solutions
Insights
  • Rating Announcements
  • Research & Analysis
  • Views
  • Latest@MARC
  • MARC in the Media
Events
  • Corporate Events
  • Corporate Social Responsibility (CSR)
  • Advertise with MARC
Contact Us
  • Contact Us
  • Service Level Feedback Form
  • Publication Feedback Form
  • Whistleblowing
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
Terms & Conditions
Privacy Notice
Copyright Notice
Whistleblowing
PDPA Notice
© 2023 Malaysian Rating Corporation Berhad. All rights reserved.
Facebook Twitter Linkedin

Join MARC Mailing List

I would like to subscribe this mailing list. Please tick whichever is applicable

I agree/ do not agree (please tick whichever is applicable) to receive future events, conferences or marketing materials from MARC. *

Privacy Notice *

Declaration *