MARC Affirms DUKE 3’s AA-IS Rating on MYR 3.64 Billion Sukuk; Revises Outlook to Stable

Malaysian Rating Corporation (MARC) has affirmed Lebuhraya DUKE Fasa 3’s (DUKE 3) MYR 3.64 billion Sukuk Wakalah rating of AA-IS, while concurrently revising the rating outlook to Stable from Negative.

According to MARC, DUKE 3 is a toll concessionaire that is undertaking the Setiawangsa-Pantai Expressway (SPE) project under a concession agreement with the Government of Malaysia due to end on the 5th of August 2069.

The rating affirmation is based on DUKE’s structured Sukuk repayment profile, which provides the toll concessionaire leeway to meet financial obligations by increasing traffic volume and generating cash inflow. In addition, the rating also considers the limi...