[RAM] RAM Ratings affirms Besraya's AA2 sukuk rating; outlook stable

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).

The affirmation reflects the Company’s solid debt coverage, backed by the steady traffic performance and strong cashflow profiles of the Sungai Besi Highway and Besraya Eastern Extension’s (collectively, the Highway). These factors, along with the transaction’s structural features and restrictive covenants, are expected to keep the finance service coverage ratio (FSCR) above 2.0 times for the remaining tenure of the sukuk – commensurate with an AA₂ rating for a highway with established traffic patterns.

The Highway traverses numerous mature and populous townships, serving as ready catchment areas for connectivity to surrounding areas with vibrant economic activity. Average daily traffic in FY March 2025 reached 168,374 vehicles, up 2.5% from FY March 2024 and further improved to 172,073 vehicles in the first two months of FY March 2026. While the cessation of government compensation payments under a restructured concession agreement (CA) effective in April 2023 has reduced Besraya’s tolling revenue, the Company’s capacity to service its debt obligations remains unaffected.

With liquidity buffers lower post-restructuring, Besraya’s cash flows may not support dividend distributions under RAM’s sensitivity analysis, which factors in moderate traffic growth, delays in government compensation and higher operating and maintenance expenses, without compromising its credit profile. As it stands, the Company has earmarked around RM50 mil in cumulative distributions until the end of sukuk tenure. 

Like other toll road concessionaires, Besraya is inherently exposed to regulatory and single-project risks. Potential termination or expropriation of the highways concession is an event risk. In such circumstances, the government will be obligated to compensate the Company based on provisions of the CA.


Analytical contacts
Nur Hadhirah Binti Bahrom 
(603) 2708 8207
hadhirah@ram.com.my

Davinder Kaur Gill 
(603) 2708 8220
davinder@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my