RAM Reaffirms Ratings of West Coast Expressway’s MYR 1 Billion Sukuk Murabahah Programme

RAM Ratings has reaffirmed the ratings of West Coast Expressway’s (WCE) MYR 1 billion Guaranteed Sukuk Murabahah Programme (2015/2036). Tranche 1 of the Sukuk Murabahah has been rated AAA(bg)/Stable, while Tranche 2 has been rated AAA(fg)/Stable.

WCE engages in designing and developing expressways in Malaysia, and is executing the West Coast Expressway (the Expressway) project. RAM’s rating reflects the binding and unconditional kafalah guarantees provided by Bank Pembangunan Malaysia (AAA/Stable/P1) and Danajamin Nasional (AAA/Stable/P1), which boost the credit strength of the Sukuk beyond WCE’s sole credit position.

According to RAM, in March 2020 the Malaysian Highway Authority approved an extension of time for construction to May 2022 for most o...