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RAM Ratings affirms AAA(bg)/Stable rating on West Coast Expressway’s guaranteed sukuk
Published on 11 Sep 2026.
RAM Ratings has affirmed the AAA(bg)/Stable rating of West Coast Expressway Sdn Bhd’s (WCE) RM1 bil Guaranteed Sukuk Murabahah Programme (2015/2036). The rating reflects an irrevocable and unconditional kafalah guarantee from Bank Pembangunan Malaysia Berhad (BPMB) (rated AAA/Stable/P1), which underpins the sukuk’s credit quality.
WCE is the concessionaire of the 193 km West Coast Expressway linking Banting, Selangor and Taiping, Perak. Construction was 97.1% complete as at end-June 2026, up from 95.4% a year earlier, after delays caused by land acquisition issues and construction work challenges. 8 of the Expressway’s 11 sections are operational, while the remaining Sections 3, 4 and 7 are slated for completion by year-end, with full opening targeted by early 2027. Remaining construction costs are expected to be funded through available financing facilities, cash reserves and ongoing toll collections, supporting the project’s near-term funding needs. The long concession period also provides some flexibility to refinance debt obligations, although this remains subject to market access and timely execution.
Average daily traffic (ADT) rose to 191,724 vehicles in 5M 2026 from 176,263 in 2025, driven mainly by higher usage of Sections 1 and 2. Under RAM’s more conservative assumptions, ADT is projected at 443,408 vehicles in the first full year of tolling, supporting revenue of RM459.9 mil. This remains below the base-case estimate of 492,675 vehicles and RM518.5 mil in revenue, reflecting RAM’s view of a more gradual traffic ramp up as connectivity improves and economic activity along the Banting-Taiping corridor develops.
Delays to full tolling have shortened the period available for traffic and cash flow to build ahead of significant debt maturities, increasing WCE’s reliance on refinancing. WCE is presently exploring refinancing its Guaranteed Sukuk, RM1.15 bil BPMB loan and RM1.5 bil syndicated term loan through a combination of new sukuk issuances and commercial borrowings. Execution risk remains elevated as refinancing plans remain preliminary and their terms have yet to be finalised. This risk is partly mitigated by demonstrated shareholder support, as seen in RM1.97 bil of equity injected to date. WCE Holdings Berhad and Road Builder (M) Holdings Bhd have also committed to fund the Expressway’s completion, including up to RM400 mil under a cash deficiency undertaking. Nonetheless, the timeliness of refinancing will remain key to WCE’s longer term debt servicing capacity.
As with most toll-road concessions, WCE faces regulatory and single-project concentration risks. Any proposed changes to the concession agreement arising from the proposed refinancing could alter the transaction’s legal, financial or cash flow structure, and we will reassess the impact of such potential changes on the transaction's credit profile and projected cash flows.
Analytical contacts
Lai Jing Wei
(603) 2780 8239
jingwei@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
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