KUALA LUMPUR: Moody’s Investors Service says Malaysia Airports Holdings Bhd’s (MAHB) exposure to expansion risks could escalate over the next 12 months.
For now, MAHB would not be directly exposed to such risks as the government retains the primary responsibility of developing new airport capacity.
MAHB operates 39 airports in Malaysia including Kuala Lumpur International Airport (KLIA) under two concession agreements executed in 2009.
Moody’s said as quoted in New Straits Times, MAHB could take on a greater role in future airport expansion, although final terms and conditions of the operator’s extension concession agreements were still being negotiated.
This, according to Moody’s, is due to potential changes to (MAHB’s) responsibilities to develop new airport capacity under a new concession agreement and a new tariff-setting framework that will determine its capacity to fund future expansion.
Final decisions on the operating agreement and a final tariff order are both expected during the second half of 2019.
Source: New Straits Times