[RAM] RAM Ratings affirms Besraya's sukuk rating

RAM Ratings has affirmed the AA₂/Stable rating of Besraya (M) Sdn Bhd’s (Besraya or the Company) RM700 million Sukuk Mudharabah Issuance Facility (2011/2028). 

Steady traffic on the Sungai Besi Highway and Besraya Eastern Extension (collectively, the Highway), coupled with the transaction’s structural features and restrictive covenants, supports the Company’s cashflow profile and steady debt coverage. Coming in at 164,281 vehicles in FY Mar 2024, the Highway’s average daily traffic rose to 166,206 in 1Q FY Mar 2025, sustaining measured improvements in its traffic performance.

Despite reduced earnings after a toll rate reduction and the absence of compensation receipts following concession restructuring, Besraya’s debt servicing ability is expected to remain robust. Moving forward, we expect minimum finance service coverage ratios (FSCRs) with cash balances of at least 2.0 times throughout the Sukuk’s tenure, corresponding to an AA2 rating for a highway with established traffic patterns. That said, the Company should be mindful of its cashflow profile and debt coverage measures in determining future distributions as liquidity buffers under the transaction are thinner post-restructuring of its concession agreement. The transaction allows distributions to shareholders, provided FSCRs are at least 2 times after each payment. 

Like other toll road concessionaires, Besraya is inherently exposed to regulatory and single-project risks. Potential termination or expropriation of its concession for the Highway is an event risk. In such a circumstance, the government will be obligated to compensate the Company based on provisions in the concession agreement.


Analytical contacts
Lee Cheng En
(603) 3385 2506
chengen@ram.com.my

Davinder Kaur Gill
(603) 3385 2525
davinder@ram.com.my

Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my