KUALA LUMPUR: Malaysian Rating Corporation Bhd (MARC) expects site visitors circulation along Kuala Lumpur-Karak Freeway (KL-Karak) and Phase 1 of East Coast Expressway (ECE1) to drop next 12 months before staging a organization recovery in 2022.
The rating company stated on Tuesday under its sensitised circumstance, it assumed a 30% and 20% decrease in website traffic for KL-Karak and ECE1 in FY2021 followed by a restoration to 90% of FY2020’s stage in FY2022.
On the other hand, by FY2024, MARC expects a full recovery and a expansion development of 1%-2% onwards.
In the statement, MARC affirmed its AAIS ranking on ANIH’s RM2.5bil senior Sukuk Musharakah programme with a secure outlook. ANIH is the concessionaire of KL-Karak and ECE1 until 2032.
“The affirmed rating demonstrates ANIH’s healthier dollars move era and satisfactory financial debt coverage, underpinned by stable website traffic performance of KL-Karak and ECE1, ” it claimed.
MARC included the ranking also added benefits from the subordinate and fairness-like functions of ANIH’s RM620mil junior bonds, which ought to offer some cushion in opposition to operational underperformance.
“However, significant gearing stays a important score constraint for ANIH. The secure outlook on the rating displays MARC’s expectation that ANIH will proceed to reveal a commendable liquidity profile by protecting nutritious money degrees more than the following 12-18 months, ” it reported.
The ranking company took take note of the influence of the Motion Manage Get (MCO) subsequent the tumble-out from the Covid-19 pandemic and how it has diminished the targeted visitors on the two highways.
“KL-Karak and ECE1’s visitors information more than April-July 2020 mirrored the impact of Covid-19. Website traffic on KL-Karak and ECE1 fell 47.3% and 41.5% y-o-y during the period, but have rebounded strongly because May perhaps 2020 just after steps to control the unfold of the virus were being eased in the state street travel has in point returned to pre-coronavirus amounts by July 2020.
“Notwithstanding some weaknesses in the final number of months pursuing the coronavirus disaster, visitors on the experienced KL-Karak and ECE1 have been on a path of steady, albeit reasonable, expansion, ” it stated.
Highway traffic for the two highways have grown at a compound yearly advancement price of 1%-2% over FY2015-FY2019 and MARC expects this to go on once Covid-19 is brought under handle.
Assuming the decrease in the visitors circulation, MARC projects regular finance services protection ratio (FSCR) at 2.15 times with a minimum amount coverage of 1.93 instances in FY2028.
“Our projections suggest that ANIH would be equipped to face up to a income minimize of 32% y-o-y in FY2021 and continue to meet up with the covenanted 1.75 occasions FSCR, ” it explained.