RAM Ratings assigns AA1/P1 ratings to YTL Power’s new sukuk

Published on 30 Jan 2023.

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RAM Ratings has assigned AA1/Stable/P1 ratings to YTL Power International Berhad’s (YTLPI or the Group) new RM7.5 bil Islamic Commercial Papers/Islamic Medium-Term Notes Programme (ICP/IMTN). The ratings of YTLPI’s other debt/sukuk programmes were affirmed at AA1 while the long-term rating outlook was revised to stable from negative earlier this month.

The ICP/IMTN is intended to eventually replace and repay outstanding obligations (as they fall due) under the Group’s existing two debt/sukuk programmes. The first issuance of RM1.5 billion is expected later this year. Our cashflow and credit metrics analysis is based on YTLPI’s guidance on its debt funding needs, and we will reassess these metrics if there is further drawdown from the proposed ICP/IMTN. 

The ratings reflect YTLPI’s solid business profile as a diversified conglomerate, operating on two continents and in multiple business lines. Its sturdy track record in concession businesses, superior liquidity position and strong financial flexibility complement this factor. The ratings are moderated by the Group’s hefty debt load, the bulk of which comprises concession-related non-recourse debts. Regulatory changes and industry challenges have also weighed on the earnings of some of its business segments. Looking ahead, the Group faces execution risks from expansion into new businesses, although mitigated by its proven investment capabilities and track record.

(For further details, see media release published on 18 January 2023).


Analytical contacts
Karin Koh, CFA
(603) 3385 2508

Davinder Kaur Gill
(603) 3385 2525


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.

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

Published by RAM Rating Services Berhad
© Copyright 2023 by RAM Rating Services Berhad

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