MARC Affirms AAIS Rating on ANIH’s MYR 2.5 Billion Senior Sukuk Musharakah Programme; Stable Outlook

Malaysian Rating Corporation (MARC) has affirmed its AAIS rating on ANIH Berhad’s (ANIH) MYR 2.5 billion Senior Sukuk Musharakah Programme, with a Stable Outlook. Malaysia-based ANIH is the Highway Concessionaire of Kuala Lumpur-Karak Highway (KL-Karak) and Phase 1 of East Coast Expressway (ECE1) until 2032, according to MARC.

MARC’s rating affirmation reflects the healthy cash flow generation and sufficient debt coverage of ANIH, brought about by stable traffic performance of KL-Karak and ECE1. In addition, the rating benefits from the subordinate and equity-like features of ANIH’s MYR 620 million Junior Bonds, which should provide a buffer against underperformance of operations. However, MARC noted that high gearing remained a key constraint of ANIH’s...