MARC: SDE’s Sukuk Affirmed at BBBis with Stable Outlook

Malaysian Rating Corporation (MARC) has affirmed the BBBis rating of Senai-Desaru Expressway’s (SDE) MYR 1.89 billion Islamic Medium-Term Notes (Restructured Sukuk) Programme, with a Stable Outlook. SDE is a 77-kilometre expressway in Johor, which links the towns of Senai and Desaru with a connecting highway to Pasir Gudang.

MARC has considered the accommodative amortisation schedule put in place under the programme, according to which the first principal repayment is due in the year 2038, this back-ended financing structure allowing SDE to strengthen its cash reserves and liquidity position. This also ensures compliance with the 1.25 times covenanted Finance Service Cover Ratio (FSCR). However, the rating is const...