RAM Ratings reaffirms AA3/P1 ratings of Gamuda‚Äôs Islamic securities
The reaffirmation of the ratings is premised on Gamuda’s established standing within the construction industry, both locally and overseas. As at end-July 2009, the Group’s outstanding construction order book stayed healthy at MYR 6 billion, which will see Gamuda through the medium term.
Looking ahead, Gamuda’s debt level is projected to exceed MYR 2 billion from FYE 31 July 2011 onwards (end-October 2009: MYR 1.61 billion), translating into gearing ratios of 0.5 to 0.6 times and operating cash flow debt coverage ratios of between 0.1 and 0.3 times over the next few years. In addition, the Group will be substantially exposed to Vietnam, given that bulk of its borrowings will go towards funding its property project there. This, however, will be moderated to some extent by the Group’s tendency to maintain considerable cash reserves.