RAM Ratings: Delay in LEKAS restructuring credit neutral to Junior Sukuk rating

Published on 07 Apr 2023.

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With the maturity extension of Lebuhraya Kajang-Seremban Sdn Bhd’s (LEKAS or the Company) RM460 mil Redeemable Convertible Secured Islamic Debt Securities (RCSIDS) from 10 April to 30 June 2023, RAM’s earlier concerns over a potential cross- default on its RM633 mil Junior Sukuk Istisna’ (2007/2025) on 10 April 2023 has been allayed for the time being. The Junior Sukuk was last rated C2/Negative, premised on the Company’s tight liquidity position and lumpy debt repayment.  

LEKAS aims to conclude the refinancing of the RCSIDS and Junior Sukuk by end-June 2023.

Collective actions to date from related parties including lenders indicate commitment to ensure the debt issue is successfully restructured. We will continue to closely monitor the transaction and make necessary updates as further details are made available to us in the coming months. 

LEKAS holds the concession for the 44 km Kajang-Seremban Highway.


Analytical contacts
Seri Nuralya Munawir
(603) 3385 2484

Davinder Kaur Gill
(603) 3385 2525


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

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Published by RAM Rating Services Berhad
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Ratings on Lebuhraya Kajang Seremban Sdn Bhd