MARC upgrades WCT Holdings unit's notes rating to AA- on improved performance of gateway@klia2

• The rating agency noted that with around 380,000 sq ft of net lettable area, the mall’s occupancy rate has reached 96.5% by end-2024, up from 85.7% in 2023.

KUALA LUMPUR (March 7): MARC Ratings has upgraded its rating on Segi Astana Sdn Bhd’s RM415 million Asean green medium-term notes (MTN) to AA- from A+, citing improved financial performance and higher occupancy at gateway@klia2. 

The agency, in a statement on Friday, also revised the rating outlook to stable from positive.

Segi Astana, a subsidiary of construction and property group WCT Holdings Bhd (KL:WCT), is the concessionaire for gateway@klia2 at Kuala Lumpur International Airport's Terminal 2.

“The rating upgrade incorporates gateway@klia2’s improved operating performance that has strengthened buffers for debt servicing and repayments,” MARC said.

“Higher passenger traffic at KLIA Terminal 2 in recent years has continued to support robust occupancy levels and significant growth in retail sales in the mall,” it added.

The rating agency noted that with around 380,000 sq ft of net lettable area, the mall’s occupancy rate has reached 96.5% by end-2024, up from 85.7% in 2023.

Rental income rose to RM83.9 million (versus RM67.4 million at end-2023), supplemented by strong turnover rental income from retail tenants.

The mall’s car park remained a source of stable income with RM46.1 million collected in 2024, MARC noted.

Segi Astana also recorded a 14.7% year-on-year revenue increase to RM142.1 million in 2024, with pre-tax profit rising 35.7% to RM50.2 million.

“Segi Astana is looking at further optimising its retail space with the expansion headroom it has relative to the mall’s 1.18 million sq ft gross floor area," said MARC. "Its capital structure has also strengthened with the issuance of new shares to one of its shareholders, Malaysia Airport Holdings Bhd [MAHB]."

Following a RM37.1 million MTN interest and principal repayment in January 2025, the company’s RM30 million cash balance and monthly net cash flow of RM6 million are expected to maintain strong debt service coverage, MARC said.

“The concession extension through 2069 from 2047 previously by MAHB also provides significant financial flexibility for any refinancing,” the rating agency added.

Planning for a new home? Download a copy of EdgeProp’s guide to new launches — with more than 800 upcoming projects inside!