Rating Agency Malaysia (RAM) has upgraded the rating of Gamuda’s US$105M Redeemable Unsecured Bonds from A1 to AA3.
The upgrade is premised on Gamuda’s business strength, characterised by an enviable order book and its sound financial profile.
During the period under review, Gamuda continued to secure sizeable contracts, such as a package on Taiwan’s Kaohsiung MRT Orange Line. It has also commenced work on the stormwater management and road tunnel project in Kuala Lumpur. These projects on their own have boosted Gamuda’s order book to US$842.42M, which could soon go up to US$1.053bn.
Gamuda has relatively minimal debts and a healthy cash reserve of more than US$118.47M. The group does not expect to gear up significantly over the next few years and is projected to have sufficient reserves to adequately meet the repayment of the bonds in 2007.
Risks, are expected to be more significant and complex as Gamuda broadens its horizons to encompass overseas ventures – inevitable as domestic infrastructure opportunities are declining.
