MARC: Projek Lebuhraya Usahasama’s MARCWatch Developing Placement on its Sukuk Musharakah Programme Extended

July 27, 2020

Following previous rating action taken in January 2020 and April 2020, the Malaysian Rating Corporation (MARC) has extended its MARCWatch Developing placement on Projek Lebuhraya Usahasama’s (PLUS) MYR 23.35 billion Sukuk Musharakah Programme.

The extension is reflective of the pending outcome of the negotiations on toll restructuring between the Government of Malaysia and the toll concessionaire. The negotiations are focused on addressing the implications from the 18% toll reduction (effective from the 1st of February 2020) on the toll concessionaire’s revenue and cash flows. This could involve an extension on the concession period, as well as a restructuring of PLUS’ Sukuk.