RAM Ratings reaffirms ratings of Impian Ekspresi’s guaranteed MTN

Published on 05 Dec 2022.

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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 (2013/2024) as follows:


Programme Size
(RM mil)

Enhanced Rating



MTN (fg)



Danajamin Nasional Berhad

11 years

MTN (bg)



Malayan Banking Berhad

11 years


The Company is the developer for the former DTC Complex site, which is being redeveloped into Pavilion Damansara Heights (the Project), an integrated development. The Project comprises nine office towers and three residential towers with a retail mall component. 

The enhanced ratings reflect irrevocable and unconditional guarantees from AAA-rated Danajamin and Maybank, which enhance the credit standing of the debt issues beyond the Company’s standalone credit strength. Excluding the guarantees, the Company’s ability to service its debt obligations depends on the Project’s timely completion and take-up of its net floor area. 

The Project is expected to be completed in 1Q 2024, a delay from the forecasted completion of 1Q 2023 during last year’s review. Due to the extension of time given by the Ministry of Housing, the estimated liquidated and ascertained damages is manageable at around RM9.35 mil. Although costs of building materials and labour have increased sharply, the Company is not expected to incur significant cost overruns due to the fixed-price turnkey construction contract. We expect construction and execution risks to be manageable as the country enters COVID-19 endemicity and business operations normalises nationwide. The good track record of the main contractor, WCT Berhad, is another mitigating factor.

Despite the challenging property market, all nine office towers had been fully taken up as at end-June 2022. However, sales progress for the residential towers is relatively slow, with 59.0% of the units sold and another 6.6% received bookings. Ahead of the mall’s planned opening in May 2023, tenants have either leased or committed to lease 58.6% of its net lettable area.

The Company’s balance sheet remained highly leveraged with gearing and net gearing ratios of 1.13 times and 0.92 times as at end-June 2022. We expect debt levels to remain elevated in the medium term as the Company may take on additional borrowings to accelerate construction progress. In the meantime, shareholder support has been available, as reflected from the RM80 mil cash injection received in 2022 which helped alleviate liquidity pressure amid the ongoing delays. Tan Sri Desmond Lim, majority owner of the Company, has also extended an irrevocable and unconditional undertaking to the guarantors of both series of MTN, to ensure sufficient funds are available 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, besides being well connected to roads and public transport.  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
Hani Hamizah Nor Hashim
(603) 3385 2575

Thong Mun Wai
(603) 3385 2522


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
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