KUALA LUMPUR: MARC Ratings has affirmed its AAAIS rating on Amanat Lebuhraya Rakyat Bhd's (ALR) RM5.5bil sukuk programme, with a stable outlook, supported by resilient traffic volumes, stable cash flows and strong debt-servicing capacity.
The rating agency said ALR's portfolio of mature toll highways had demonstrated stable and predictable traffic performance over more than two decades, resulting in low traffic volume risk.
The sukuk transaction’s zero-dividend structure further supports cash flow retention, strengthening the prospects for sukuk redemption at the first call date in the financial year ending March 31, 2034 (FY34).
ALR's portfolio comprises the Damansara-Puchong Expressway (LDP), Shah Alam Expressway (KESAS), Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT) and Stormwater Management and Road Tunnel (SMART).
MARC Ratings said LDP, KESAS and SPRINT accounted for about 98% of traffic volume and 97% of toll revenue in FY26 and the first three months of FY27.
The portfolio's average daily traffic remained broadly stable at about 1.01 million vehicles during both periods.
Toll revenue increased to RM827.2mil in FY26 and is projected to reach approximately RM839mil in FY27.
Cash flow from operations rose to RM815.2mil in FY26, while total borrowings declined to RM4.805bil as at end-June 2026 from RM5.165bil as at end-March 2025, following a RM360mil sukuk principal repayment in October 2025.
The company's debt-to-equity ratio improved to 5.8 times, supported by lower borrowings and higher shareholders' funds.
Meanwhile, cash balances increased to RM1.27bil as at end-March 2026 before rising further to RM1.32bil as at end-June 2026.
Its finance service coverage ratio strengthened to 3.04 times in FY26 from 2.74 times in FY25, exceeding the projected 2.94 times.
MARC Ratings said that under its sensitised scenario, which assumes zero traffic volume and higher operating costs, the minimum projected finance service coverage ratio for FY27 to FY38 remained at 3.12 times, comfortably above the 1.5 times covenant threshold.
