[RAM] RAM Ratings affirms Amanat Lebuhraya Rakyat's AAA rating

RAM Ratings has affirmed the AAA/Stable rating of Amanat Lebuhraya Rakyat Berhad’s (ALR or the Issuer) RM5.5 bil Senior Sukuk Programme (2022/2044) (the Sukuk). The affirmation reflects ALR’s robust debt coverage metrics and the stability of cash flows generated by its portfolio comprising four mature highways, the Damansara-Puchong Expressway (LDP), Shah Alam Expressway (KESAS), SPRINT Expressway and the SMART Tunnel.

ALR is expected to sustain robust debt coverage ratios throughout the Sukuk’s tenure, underpinned by the consistent operational performance of and cash flows from its highway assets. The maturity of these highways and fixed toll rates over the life of the Sukuk moderate demand and competitive risks. The rating is also supported by the transaction’s financing structure, including restrictive covenants that prohibit shareholder distributions and further indebtedness. 

Aggregate average daily traffic across the four highways grew by a mild 0.4% to over one million vehicles in the first nine months of CY 2025, with growth on the SPRINT Expressway and KESAS continuing to offset weaker traffic on the LDP and the SMART Tunnel. Prudent cost management kept expenditure well below transaction-imposed limits, resulting in strong pre-financing cash flow of RM402.6 mil in 6M FY Mar 2026 (FY Mar 2025: RM705.8 mil). 

Going forward, ALR’s steady annual cash flows and group cash reserves of RM1.34 bil as at end-September 2025 are anticipated to support a minimum finance service coverage ratio (with cash balances) of 2.28 times throughout the tenure of the Sukuk, commensurate with the AAA rating.  While the Issuer remains exposed to regulatory and political risks inherent in highway concessions, the risk of concession termination or expropriation due to non-performance is deemed low, given the highways’ established track record. The diversified portfolio underlying the transaction also limits exposure to force majeure risk.

Incorporated in December 2021, ALR is a not-for-profit entity tasked with acquiring and managing the four highway concession companies, ensuring urban mobility, eliminating government compensation for toll rate non-revision, maintaining toll affordability, and returning the highways to the government upon repayment of the Sukuk. 


Analytical contacts
Karin Koh, CFA
(603) 2708 8237
karin@ram.com.my

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

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