MARC Extends Negative MARCWatch Placement on MEX II’s MYR 1.3 Billion Sukuk Murabahah Programme Ratings

Malaysian Rating Corporation (MARC) has extended its MARCWatch negative placement on MEX II’s MYR 1.3 billion Sukuk Murabahah Programme (Sukuk Murabahah) and MYR 150 million Junior Bonds issuance.

MEX II is owned by Maju Holdings and provides infrastructure construction services in Malaysia. According to MARC, MEX II has a 33-year 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 had initially placed the ratings on watch in May 2020, to account for MEX II’s lack of progress with the MEX Extension and...