RAM Ratings has reaffirmed the ratings of Tranche 1 and Tranche 2 of West Coast Expressway Sdn Bhd’s (West Coast or the Company) RM1 billion Guaranteed Sukuk Murabahah Programme (2015/2036) at AAA(bg)/Stable and AAA(fg)/Stable, respectively. The ratings reflect irrevocable and unconditional Kafalah extended by AAA-rated Bank Pembangunan Malaysia Berhad and Danajamin Nasional Berhad, which enhance the Sukuk’s ratings beyond West Coast’s stand-alone credit strength.
RAM Ratings has reaffirmed the ratings of Tranche 1 and Tranche 2 of West Coast Expressway Sdn Bhd’s (West Coast or the Company) RM1 billion Guaranteed Sukuk Murabahah Programme (2015/2036) at AAA(bg)/Stable and AAA(fg)/Stable, respectively. The ratings reflect irrevocable and unconditional Kafalah extended by AAA-rated Bank Pembangunan Malaysia Berhad and Danajamin Nasional Berhad, which enhance the Sukuk’s ratings beyond West Coast’s stand-alone credit strength.
Based on RAM’s sensitised cashflow analysis, West Coast would face a shortfall in meeting its profit payments in August 2018 and in completing construction, necessitating shareholder support during construction. The Company expects to refinance a lumpy repayment of a syndicated term loan for the Project by FY Mar 2028. On this note, the long remaining life of the concession (at least 36 years) provides room for such an exercise, and West Coast’s cashflow over the concession period is envisaged to be able to support all its debt repayments. In addition, a government support loan provided for the Project has been structured on repayment terms that do not constrain West Coast’s financials.
this stock no need see result. Buy and keep till your children graduate or give grandson! MINI PLUS! WCE, damn good prospect, all big boy here, MAMEE boss, MAGNUM boss, IJM, all big water pipe! This WCE will be hot cake! why? PLUS every yr JAM, jam jam like mad! PPL will use WCE as alternative, and their highway shorter to reach destination if you study the line!
For the quarter: The Group recorded revenue of RM236.3 million in the current quarter compared to RM163.9 million in the preceding year quarter. The increase is largely due to higher construction revenue recognised in the current quarter pursuant to IC Interpretation 12 (IC12) Service Concession Arrangements pertaining to the highway project. The Group recorded a pretax profit of RM10.3 million in the current quarter compared to a pretax profit of RM12.1 million in the preceding year quarter. The lower profit is due mainly to the lower share of results of associates, lower distribution income from unit trusts investments and lower fair value gain on other investments in the current quarter.
The Group recorded revenue of RM236.3 million in the current quarter compared to RM210.8 million in the preceding quarter, attributed to the to the higher construction revenue recognised pursuant to IC Interpretation 12 Service Concession Arrangements. The Group recorded a pretax profit of RM10.3 million in the current quarter compared to a pretax profit of RM2.7 million in the preceding quarter. The profit is higher in the current quarter attributed mainly to RM6.9 million provision for impairment on receivables made in the preceding quarter.
(a) The West Coast Expressway (WCE) Project involves the development of a 233 kilometres tolled highway from Banting, Selangor to Taiping, Perak (including 40 kilometres of highway to be constructed later). The WCE Project is a build-operate-transfer project with a concession period of up to a maximum of 60 years. The total project cost is approximately RM5,900 million and revenue from sectional toll collections is expected to commence in 2018. The Construction Commencement Date was set on 25 August 2014 and will take five years to complete. Currently, the construction is ongoing.
For the coming financial year, Bandar Rimbayu is expected to deliver satisfactory performance on the back of the unbilled sales and positive response to its recent sales launches.
The Company is also participating in the construction of the WCE as the IJMC-KEB Joint Venture has been appointed as the Turnkey/Engineering and Procurement Contractor for the WCE highway project.
Very little research about this counter, probably due to the bad image of TALAM and long delay associated with WCE. Buy WCE and EKOVEST and can keep for 10 years !
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paperplane2016
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Posted by paperplane2016 > 2016-07-20 13:48 | Report Abuse
RAM Ratings has reaffirmed the ratings of Tranche 1 and Tranche 2 of West Coast Expressway Sdn Bhd’s (West Coast or the Company) RM1 billion Guaranteed Sukuk Murabahah Programme (2015/2036) at AAA(bg)/Stable and AAA(fg)/Stable, respectively. The ratings reflect irrevocable and unconditional Kafalah extended by AAA-rated Bank Pembangunan Malaysia Berhad and Danajamin Nasional Berhad, which enhance the Sukuk’s ratings beyond West Coast’s stand-alone credit strength.