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RAM Ratings affirms Amanat Lebuhraya Rakyat’s AAA sukuk rating
Published on 03 Nov 2026.
RAM Ratings has affirmed the AAA/Stable rating of Amanat Lebuhraya Rakyat Berhad’s (ALR) RM5.5 bil Senior Sukuk Programme (2022/2044) (the Sukuk).
The affirmation reflects ALR’s robust debt-servicing capacity, supported by stable cash flows from four mature highways: the Damansara-Puchong Expressway (LDP), Shah Alam Expressway (KESAS), SPRINT Expressway and the SMART Tunnel (collectively, the Highways). The Highways’ strategic alignments connect densely populated areas across the Klang Valley. LDP and KESAS link established townships to major interchanges and highway networks, while SPRINT and SMART facilitate easier access to Kuala Lumpur.
In FY Mar 2026, ALR generated RM823.4 mil in pre-financing cash flow, translating into a robust finance service coverage ratio (FSCR) of 3.04 times, including cash balances. Average daily traffic across the Highways grew 0.4% y-o-y in both 2025 and 1H 2026, which alongside prudent cost management, supported operating performance.
As at end-June 2026, ALR held RM1.3 bil in cash, sufficient to meet RM627.8 mil of sukuk obligations due over the next 12 months. Debt-servicing metrics are expected to stay healthy, underpinned by steady operational performance, stable cash generation and consistent cash accumulation. Under RAM’s sensitised case, the projected minimum FSCR, including cash balances, is 2.54 times over the remainder of the Sukuk’s tenure, against management’s base case expectations of 3.12 times. The Highways’ maturity and fixed toll rates over the life of the Sukuk help mitigate demand and competitive risks. The financing structure provides further protection by prohibiting shareholder distributions and additional indebtedness.
ALR remains exposed to the regulatory and political risks inherent in highway concessions, including changes to tolling arrangements and concession terms. Nevertheless, the likelihood of concession termination or expropriation due to non-performance is low, given the Highways’ established operating record, while portfolio diversification limits exposure to asset-specific force majeure events. Costs associated with the planned nationwide Multi-Lane Fast Flow barrier-free tolling system remain excluded from our analysis pending greater clarity on its implementation timetable, funding responsibility and associated operating and capex requirements.
ALR was incorporated in December 2021 as a not-for-profit entity to acquire and manage the four highway concession companies. Its mandate is to support urban mobility, eliminate government compensation for toll rate freezes, and maintain affordable tolls while ensuring sufficient cash flows to repay the sukuk. The Highways will ultimately be transferred to the government once the Sukuk has been fully repaid.
Analytical contacts
Chuan Shyang Lin
(603) 2708 8209
shyanglin@ram.com.my
Davinder Kaur Gill
(603) 2708 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 2026 by RAM Rating Services Berhad
