RAM Ratings has downgraded the long-term ratings of two of MRCB Southern Link Bhd (MSLB)’s secured sukuk issues and cautioned that there was a high chance the company would default on them in December.
MSLB is a funding conduit for the 8.1km Eastern Dispersal Link Expressway (EDL) in Johor Baru.
The highway opened to the public on April 1 this year, but a month earlier, the government announced that the EDL would not be commencing tolling as per the terms of the concession agreement.
RAM said it understood that Malaysian Resources Corporation Bhd, which is the project sponsor, does not intend to fund any shortfall in meeting the debt obligations.
