RAM Reaffirms C2/Stable Rating of LEKAS’ MYR 633 Million Junior Sukuk

RAM Ratings (RAM) has reaffirmed Lebuhraya Kajang-Seremban’s (LEKAS) MYR 633 million Junior Sukuk Istisna’ (2007/2025) rating at C2/Stable.

Malaysian-based highway operator LEKAS holds the concession for the 44-kilometre Kajang-Seremban Highway (the Highway) until May 2039. RAM’s rating reflects the high likelihood of default on the Junior Sukuk as well as its subordination to LEKAS’ other debt obligations such as its Redeemable Convertible Secured Islamic Debt Securities (RCSIDS) and Syndicated Term Loan (STL). According to RAM, repayments on the Junior Sukuk are not allowed until LEKAS’ other debt obligations have been fully settled, following debt restructuring in October 2013. LEKAS wil...