[RAM] RAM Ratings affirms AA2 rating of MEX Capital's RM1.13 bil Sukuk

RAM Ratings has affirmed the AA₂/Stable rating of MEX I Capital Berhad’s (MEX Capital) RM1.126 bil Senior Sukuk Musharakah (2022/2040) (the Sukuk).

The Sukuk repayments is solely reliant on the residual cash flows upstreamed from Maju Expressway Sdn Bhd (MESB) – MEX Capital’s 96.8% owned subsidiary and concessionaire of the Maju Expressway (MEX or the Highway). Stable traffic and sizeable cash reserves support our expectation that annual finance service coverage ratios (including cash balances) will remain above 2.5 times, consistent with metrics we typically associate with AAA-rated toll road project finance structures.

Despite the strong finance coverage, the rating incorporates downward notching to reflect MESB’s sensitivity to concession renegotiation risk (including the potential toll rate freezes and/or discontinuation of compensation mechanism) given that government compensation constitutes nearly 40% of projected revenue. Governance considerations remain relevant, given historical weaknesses in financial discipline as well as ongoing investigations and legal actions taken by lenders within the wider sponsor group. To date, these developments have not resulted in any breach of Sukuk covenants or negatively impaired MEX Capital or MESB’s operations or liquidity. RAM will continue to monitor for any spillover risks, including adverse court outcomes or reputational impact and reassess for credit implications, should circumstances change.

Traffic on MEX remained broadly stable in 2025 and 3M 2026, with average daily traffic of 177,452 vehicles (+0.7% y-o-y) and 174,576 vehicles (-1.6% y-o-y), respectively, aligning with RAM’s slower growth forecast. Operating and maintenance costs on MEX stayed within permitted limits, supporting cash flow stability. Although sukukholders rejected MEX Capital’s request to increase certain reimbursable expenses (including LED lighting and land survey payments), we view these additional costs as manageable relative to the transaction’s headroom and liquidity buffers.

Like other toll road concessionaires, MESB is inherently exposed to regulatory and single-asset risks. Concession termination or expropriation is an event risk that would be credit negative, particularly as the CA does not obligate the government to compensate MESB or its lenders in such circumstances.

The MEX is a 26-kilometre open-toll expressway connecting central Kuala Lumpur to Putrajaya and Cyberjaya. The 16.8-kilometre MEX II Highway, previously intended to extend connectivity to Kuala Lumpur International Airport, remains incomplete and has not been factored into our analysis for the rated transaction.


Analytical contacts
Chew Chiang Lim
(603) 2708 8297
chianglim@ram.com.my

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

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