RAM Downgrades MEX Capital’s MYR 1.35 Billion Sukuk Musharakah Rating to C3/Negative

RAM Ratings (RAM) has downgraded MEX I Capital’s (MEX Capital) MYR 1.35 Billion Sukuk Musharakah (2014/2031) (the Sukuk) Rating to C3/Negative from BB1/Negative.

Ratings and Outlook Rationale

The rating downgrade is based on MEX Capital’s continued liquidity issues and increased default risk amid plummeting traffic volumes along the Maju Expressway (MEX or the Highway). In addition, the downgrade is attributed to delays in the conclusion of the company’s planned restructuring exercise to refinance the Sukuk.

The Outlook on the Sukuk remains Negative as MEX Capital’s debt servicing ability is still susceptible to various adversities such as its stressed liquidity position, which increases default risk if the restructur...