KUALA LUMPUR (Aug 30): Malaysian Rating Corp Bhd (MARC) has removed its ratings on all toll concessionaires in its universe from MARCWatch Developing.

The ratings were placed since May 30 due to heightened uncertainty on the toll road sector pending clarity on the abolishment of toll road charges.

In a statement today, the rating agency said the removal of the ratings from MARCWatch Developing reflects a substantially reduced imminent risk to the toll road sector after the government indicated that any plan to abolish toll road charges has now been put on hold.

Nonetheless, MARC said it remains concerned that the prevailing uncertainty on the toll road sector could linger as the government considers various options to resolve the tolling issue.

"Coupled with the concern on the outcome of the looming toll hikes rescheduled in 2019/2020, where any toll hike deferrals without timely government compensation could impact the cashflows of toll road concessionaires, MARC has attached a negative outlook on the ratings of the toll road concessionaires in our universe," it added.

The toll concessionaires MARC covers are Grand Sepadu (NK) Sdn Bhd, Cerah Sama Sdn Bhd, Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd, Sistem Penyuraian Trafik KL Barat Sdn Bhd, ANIH Bhd, Senai-Desaru Expressway Bhd, Projek Lebuhraya Usahasama Bhd, MEX II Sdn Bhd, Lebuhraya Duke Fasa 3 Sdn Bhd and Projek Lintasan Sungai Besi-Ulu Klang Sdn Bhd.

The rating agency said it will continue to monitor developments in the toll road sector, assessing the impact to take appropriate rating actions on the toll concessionaires.