RAM Ratings reaffirms ratings of Impian Ekspresi’s guaranteed MTN

Published on 10 Dec 2021.

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RAM Ratings has reaffirmed the enhanced ratings of Impian Ekspresi Sdn Bhd’s (the Company) RM450 mil Guaranteed Medium-Term Notes (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 and Maybank, which enhance the credit standing of the debt issues beyond Impian Ekspresi’s standalone credit strength. 

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 hindered by changes in development plans, a delay in the approval of the development order, the complexity of demolition work and, more recently, disruptions from Covid-19 infections and lockdowns. Construction and execution risks are expected to be kept manageable in view of the track record of the reputable contractor for the Project, WCT Holdings Berhad. 

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

As Pavilion Damansara Heights is Impian Ekspresi’s sole project, prompt 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 received encouraging response. As at end-September 2021, 97% of space in its nine office towers had been sold, with bookings received for the remaining 1.8%. Of the 1,314 units available in the three residential towers, 57.5% have been sold while 11.9% have been booked. Ahead of the mall’s planned opening in 4Q 2022, tenants have either leased or committed to lease 52.2% of its net lettable area.

Impian Ekspresi’s balance sheet remained highly leveraged with a net gearing ratio of 1.26 times as at end-June 2021. We expect the Company’s balance sheet to improve moving forward, in line with the gradual receipt of sale proceeds from the office towers and residential units which will be used to pare down debts. Tan Sri Desmond Lim has extended an irrevocable and unconditional undertaking to the guarantors of both series of MTN, to ensure the availability of sufficient funds for the Project’s completion and any cost overruns.

We expect Pavilion Damansara Heights to continue to benefit 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 contacts
Thong Mun Wai
(603) 3385 2522

Fareez Iskandar, CB
(603) 3385 2502


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 2021 by RAM Rating Services Berhad

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