MARC Downgrades MEX II’s MYR 1.3 Billion Sukuk Murabahah to BBB-IS; Maintains MARCWatch Negative Placement

Malaysian Rating Corporation (MARC) has downgraded MEX II’s MYR 1.3 billion Sukuk Murabahah Programme (Sukuk Murabahah) rating to BBB-IS from AIS, and its MYR 150 million Junior Bonds to BB from BBB, while maintaining the rating placement on MARCWatch Negative.

MEX II is owned by Maju Holdings and provides infrastructure construction services in Malaysia. According to MARC, MEX II has a toll concession agreement with the Government of Malaysia to design, construct, operate and maintain a 16.8 km Lebuhraya Putrajaya-Kuala Lumpur International Airport (KLIA) highway project, known as the MEX Extension.

MARC’s downgrade on the Sukuk Murabahah reflects its concerns on MEX II...