RAM Ratings has affirmed the AA1/Stable rating of Indera Persada Sdn Bhd's (the Company) RM280 million Fixed Rate Serial Bonds (2013/2028) and RM68 million Medium Term Notes (MTNs) (2023/2031). 

The affirmation is anchored on Indera Persada's solid debt-servicing ability supported by stable concession-backed Availability Charges (ACs) earmarked for bond repayments and taxes, structural protections that limit cash flow leakage, and projected debt coverages that remain in line with rating thresholds. AC collections during the review period were generally timely, reinforcing the Company's debt service resilience and liquidity. Under RAM's stressed analysis, the Company is expected to maintain consolidated projected debt service coverage ratios (DSCRs) of at least 1.50 times for the Serial Bonds and MTNs, consistent with the threshold required for an AA1-rated low-complexity private finance initiative or public-private partnership project.

Upon completion of Public Works Department's (PWD) training centre (the Project), Indera Persada is entitled to receive monthly Maintenance Service Charges (MSCs), in addition to ACs. MSCs are intended to fund operating and maintenance (O&M) obligations for the Project and are separate from ACs, which are reserved for debt service and taxes. While debt servicing remains unaffected from operating cash flow pressures, Indera Persada's operating performance weakened in 2025 and year-to-date 2026 as MSCs deductions rose to 17% in 2025 and to about 19% in 4M 2-26, mainly due to rental, IT, staffing and rectification costs. 

O&M costs have continued to exceed net MSC receipts, increasing reliance on shareholder support from Digistar Corporation Berhad (Digistar) - Indera Persada's 70% ultimate parent - particularly if maintenance performance does not improve or cost pressures remain elevated. That said, the higher cost base is driven mainly by personnel expenses, partly reflecting government's minimum wage revision, rather than dir