[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 earnings 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 its finance service coverage ratio (FSCRs, with cash balances, calculated at sukuk principal repayment dates) above the 2 times rating threshold for the remaining tenure of the sukuk.

The Highway benefits from strong and established traffic catchment, traversing mature and densely populated townships while providing connectivity to established economic corridors. Traffic performance stayed resilient in the past year, with average daily traffic (ADT) increasing 1.2% y-o-y to 170,364 vehicles in FY Mar 2026 and 170,689 vehicles in the first four months of fiscal 2027. Notably, under its concession restructuring that came into effect April 2023 onwards, Besraya’s toll rates were reduced by 7.5% while its compensation payments for non-revision of toll rates ceased, in exchange for a six-year concession extension to 2046. Its debt-servicing capacity remaining resilient despite weaker earnings. Shareholder distributions, however, should be balanced against earnings and debt coverage considerations, given the transaction's reduced rating cushion post-concession restructuring.

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. While insurance may offer some financial relief, coverage may not fully offset losses, although a prolonged disruption of the entire Highway is considered unlikely.


Analytical contacts
Lai Jing Wei 
(603) 2708 8239
Jingwei@ram.com.my

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

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Sakinah Arifin
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