Road Builder is involved in construction, property development, toll and port industries, with construction accounting for around 70% of sales and 60% of pre-tax profits.
“This division also provides the support required for Road Builder's other businesses, allowing the group to actively and effectively diversify its earnings base,” RAM said in a statement.
It added that the rating was moderated by inherent cyclicality and current weak sentiment in both the construction and property markets.
RAM said Road Builder had debts of RM1.49bil but noted that RM801.3mil of that figure were long-term facilities to finance investments in its toll concessionaires, as well as interest-free government support loans, which were subordinated to the company's project-level debt. – AFX
The rating was premised on the strength of the guarantee provided by a consortium of financial institutions, comprising United Overseas Bank (M) Bhd, Malayan Banking Bhd, RHB Bank Bhd and RHB Sakura Merchant Bankers Bhd, RAM said.
Ipmuda is a trading company dealing mainly in building materials. Its primary emphasis is on the sale of steel bars and cement. Its other products include kitchen cabinets, tap fittings, sanitary ware, tiles and lock sets. – Bernama
The rating was, however, constrained by Mithril's exposure to the manufacturing industry, in particular the brick manufacturing business, it said. – Bernama
Road Builder is involved in construction, property development, toll and port industries, with construction accounting for around 70% of sales and 60% of pre-tax profits.
Limited time offer:
Just RM5 per month.
