KUALA LUMPUR (May 14): MARC Ratings Bhd has affirmed 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 billion that is guaranteed by Bank Pembangunan Malaysia Bhd for up to RM500 million, with a stable outlook.

PLSUKE operates the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE), a 24.4km tolled road from Sri Petaling to Ulu Kelang in the Klang Valley.

It is owned by Projek Lintasan Kota Holdings Sdn Bhd (PLKH), an indirect subsidiary of Permodalan Nasional Bhd (PNB).

MARC said its rating for PLSUKE’s sukuk wakalah reflects the unconditional and irrevocable corporate guarantee provided by PLKH for full repayment of obligations under the subsidiary’s sukuk facility.

“The rating incorporates MARC’s expectation of continuing support from PNB as has been demonstrated in the past,” it said in the statement on Tuesday.

PLKH also known as Prolintas, is also the major shareholder of the first listed infrastructure trust Prolintas Infra Business Trust (KL:PLINTAS) or Prolintas Infra BT, which involved four of its matured highways — the Ampang-Kuala Lumpur Elevated Highway (Akleh), Guthrie Corridor Expressway (GCE), Lebuhraya Kemuning-Shah Alam (LKSA) and Sistem Lingkaran-Lebuhraya Kajang (SILK).

MARC said traffic on SUKE and the Alam Damai Elevated Interchange has shown a steady increase since their openings in mid-2023.

The total number of vehicles rose to about 88,099 per day for the full 2023, from 65,581 vehicles per day between Jan 1 and June 14 in 2023. Up to April 22 this year, the annual average daily traffic rose further to 110,885 vehicles daily, MARC noted.

"MARC believes traffic volumes could see additional growth over the medium term, supported by SUKE’s multi-connectivity to major highways and matured catchment areas," it said.

Meanwhile, the overall financial risk assessment remains unchanged from MARC’S 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," it said.

Nonetheless, MARC believes that the risk is mitigated by PLSUKE’s relation to PLKH and PNB, with demonstrated access to both bank funding and capital markets. It also added that the long remaining life of the concession — for at least 42 years from 2027 — should facilitate its refinancing.