RAM Ratings reaffirms ratings of Impian Ekspresi’s guaranteed MTN

Published on 12 Oct 2020.

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RAM Ratings has reaffirmed the enhanced ratings of Impian Ekspresi Sdn Bhd’s (the Company) Guaranteed MTN Programme, as follows:


Issue Size
(RM mil)

Enhanced Rating



MTN (fg)



Danajamin Nasional Berhad

11 years

MTN (bg)



Malayan Banking Berhad

11 years


The enhanced ratings reflect irrevocable and unconditional guarantees from AAA rated Danajamin Nasional Berhad and Malayan Banking Berhad, which enhance the credit standing of the debt issues beyond Impian Ekspresi’s stand-alone credit strength. The maturity of the MTN programme has been extended from November 2023 to November 2024. This will not have any rating impact on Impian Ekspresi’s guaranteed debt issues.

Excluding the guarantees, Impian Ekspresi’s ability to service its debt obligations depends on the timely completion and take-up of Pavilion Damansara Heights (the Project), which the Company is developing. Construction progress has been hampered by changes in development plans, delay in approval of the development order, complexity of demolition work and, more recently, the various stages of the movement control order (MCO). Nonetheless, Pavilion Damansara Heights’ construction and execution risks are expected to be manageable as the Project has a reputable contractor, i.e. WCT Holdings Berhad. 

Impian Ekspresi is redeveloping the former DTC Complex into Pavilion Damansara Heights Integrated Development. The Project comprises nine commercial towers, three residential towers and a retail component with 8 levels of basement carpark. The Company’s majority shareholder, Tan Sri Desmond Lim, is also the executive chairman of WCT Holdings Berhad, the non-executive chairman of Malton Berhad, and the chairman and executive director of Pavilion REIT Management Sdn Bhd.

Given that Pavilion Damansara Heights is Impian Ekspresi’s sole project, timely completion and sale of the Project are imperative to the Company’s ability to service its debt obligations. Despite the challenging property market, Pavilion Damansara Heights has been receiving encouraging response. Its nine office towers are almost fully taken up. Sale and purchase agreements (SPAs) have been signed for all the seven office towers that have been sold en bloc. The other two office towers have been sold on a strata-title basis. All units have been taken up except two units in one tower and two floors in another tower, these however have been booked and are in the process of signing SPAs. As at end-June 2020, 54.6% of the three residential towers have been sold while bookings have been received for 15.1% of the 1,314 units launched. In addition, 48.4% of the mall’s net lettable area has been leased or committed by tenants.

Impian Ekspresi remains highly leveraged, with a gearing ratio of 1.26 times as at end-March 2020. Moving forward, its leverage is expected to ease as sale proceeds will be used to pare down its debts. Tan Sri Desmond Lim Siew Choon, who holds a majority stake in the Company, has extended an irrevocable and unconditional undertaking to the guarantors of both MTN, to ensure sufficient funds for the Project’s completion and to cover any cost overruns. Impian Ekspresi will be rolling over the RM450 million MTN that will mature in November 2020.

All said, Pavilion Damansara Heights is anticipated to keep benefiting from its prestigious address that boasts excellent visibility and accessibility. The Project is also envisaged to gain from its experienced project team, mainly comprising personnel from Malton Group and Pavilion REIT Management Sdn Bhd. 


Analytical contact
Desmond Lau
(603) 3385 2523

Media contact
Padthma Subbiah
(603) 3385 2577


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2020 by RAM Rating Services Berhad

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