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RAM Ratings affirms Westports Malaysia’s AAA sukuk ratings
Published on 11 Nov 2025.
RAM Ratings has affirmed the following issue ratings of Westports Malaysia Sdn Bhd (the Company or Westports):
The ratings reflect Westports strong operational and financial profile, anchored by its entrenched market position as the operator of Malaysia’s largest gateway container terminal and a key regional transhipment hub in Port Klang. The port’s strategic location along the Straits of Malacca – one of the world’s busiest global shipping routes – and a favourable tariff regime, continues to confer the Company a durable competitive edge.
These credit strengths are moderated by notable risks, including customer concentration and exposure to fluctuations in global trade flows. These vulnerabilities are heightened by macroeconomic uncertainty, ongoing shifts in global supply chains, persistent geopolitical tensions, particularly between the US and China and evolving trade policies. Despite these headwinds, throughput volume remained resilient in 2024 and 9M 2025, underpinned by manufacturing activity in the port’s hinterland and pre-emptive shipments ahead of new US reciprocal tariffs. The recent formation of the Gemini Cooperation shipping alliance has had minimal operational impact on the Company, with Wesports maintaining its status as a key Southeast Asian hub for the Ocean Alliance.
While Westports container throughput rose by a modest 1% to 10.98 mil TEUs in 2024, the Company’s overall financial performance stayed robust, supported by a favourable tariff structure and prudent cost management. However, management expects throughput growth in 2025 to be subdued at low single digits, reflecting weaker trade momentum amid U.S.-China friction and stricter local customs inspections on e-waste and scrap metal imports, which have slowed gateway volume growth momentum.
The extension of the Company’s concession to 2070 under the Third Supplemental Privatisation Agreement resulted in higher reported liabilities, with lease liabilities to the Port Klang Authority (PKA) increasing total debt to RM3 bil as at end-December 2024 (end-December 2023: RM1 bil). These leases expenses are treated as operational in nature under RAM’s assessment, and we have accordingly, made analytical adjustments in the Company’s financials metrics. These ratios, as reflected in the Company’s projected debt coverage and leverage indicators remain in line with the AAA ratings.
The ongoing Westports 2 expansion (CT10–CT17), which will double terminal capacity to 28 mil TEUs, introduces execution and cost management risks. These are mitigated by the Company’s experienced management, robust balance sheet and liquidity position as well as disciplined capital management. The RM4.2 bil allocated for capital expenditure between 2025 and 2029 will be funded by a mix of internal funds, debt and equity (via a recently introduced dividend reinvestment plan). The phased tariff increases for Port Klang (up to 30%), effective July 2025 to January 2027, are expected to offset expansion-related financial pressures and further strengthen cash flows.
Analytical contacts
L Nurisya Abdullah
(603) 2708 8238
nurisya@ram.com.my
Davinder Kaur Gill
(603) 2780 8220
davinder@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
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.
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
© Copyright 2025 by RAM Rating Services Berhad
