KUALA LUMPUR: RAM Ratings has reaffirmed the A1 long-term rating of Lumut Maritime Terminal Sdn Bhd’s RM60 million Bai’ Bithaman Ajil Islamic Debt Securities (2004/2017) (BaIDS), with a stable outlook.
“Lumut Maritime’s credit strength remains anchored by the stable cashflow derived from its operations and maintenance agreement with Lekir Bulk Terminal Sdn Bhd and commendable operational track record.
“Under the agreement, the company receives fixed payments from Lekir Bulk regardless of the volume of coal handled at the jetty,” RAM said in a statement yesterday.
Notably, it said, cashflow from the provision of operations and maintenance services alone was expected to adequately cover Lumut Maritime’s yearly debt-servicing obligations on the BaIDS.
“Furthermore, additional cash flow generation is expected from 2015, following the formalisation of a new operations and maintenance agreement between the company and Lekir Bulk in respect of the coal-unloading requirements
of TNB Janamanjung’s new 1,000 megawatt coal-fired power plant,” it added.
Lumut Maritime owns and operates a multi-purpose port facility while providing operations and maintenance services to Lekir Bulk deep-water bulk jetty, which at present caters to the coal-unloading requirements of TNB Janamanjung.
The company is also involved in the development and sale of a 346 ha.industrial park known
as Lumut Port Industrial Park, located next to the port. — Bernama