KUALA LUMPUR: Malaysian Ranking Company Bhd (MARC) expects website traffic circulation along Kuala Lumpur-Karak Highway (KL-Karak) and Phase 1 of East Coastline Expressway (ECE1) to drop following 12 months ahead of staging a firm recovery in 2022.
The score company explained on Tuesday under its sensitised situation, it assumed a 30% and 20% drop in targeted visitors for KL-Karak and ECE1 in FY2021 followed by a recovery to 90% of FY2020’s stage in FY2022.
On the other hand, by FY2024, MARC expects a comprehensive restoration and a advancement trend of 1%-2% onwards.
In the assertion, MARC affirmed its AAIS score on ANIH’s RM2.5bil senior Sukuk Musharakah programme with a steady outlook. ANIH is the concessionaire of KL-Karak and ECE1 right up until 2032.
“The affirmed rating displays ANIH’s wholesome hard cash circulation era and enough credit card debt protection, underpinned by stable site visitors functionality of KL-Karak and ECE1, ” it mentioned.
MARC included the score also positive aspects from the subordinate and equity-like features of ANIH’s RM620mil junior bonds, which should present some cushion towards operational underperformance.
“However, high gearing continues to be a crucial score constraint for ANIH. The stable outlook on the rating demonstrates MARC’s expectation that ANIH will continue on to display a commendable liquidity profile by sustaining wholesome income stages about the up coming 12-18 months, ” it mentioned.
The score agency took take note of the impression of the Movement Management Get (MCO) adhering to the fall-out from the Covid-19 pandemic and how it has diminished the site visitors on the two highways.
“KL-Karak and ECE1’s targeted traffic information above April-July 2020 mirrored the impact of Covid-19. Site visitors on KL-Karak and ECE1 fell 47.3% and 41.5% y-o-y in the course of the period, but have rebounded strongly considering the fact that May well 2020 right after actions to control the unfold of the virus were eased in the region street journey has in actuality returned to pre-coronavirus degrees by July 2020.
“Notwithstanding some weaknesses in the very last few months pursuing the coronavirus crisis, website traffic on the mature KL-Karak and ECE1 have been on a route of continuous, albeit reasonable, advancement, ” it stated.
Road visitors for the two highways have developed at a compound annual expansion rate of 1%-2% around FY2015-FY2019 and MARC expects this to keep on after Covid-19 is brought less than control.
Assuming the decrease in the targeted visitors flow, MARC projects average finance provider protection ratio (FSCR) at 2.15 instances with a least protection of 1.93 instances in FY2028.
“Our projections show that ANIH would be able to withstand a profits lower of 32% y-o-y in FY2021 and nonetheless satisfy the covenanted 1.75 times FSCR, ” it stated.