RAM Ratings affirms TIME dotCom’s AA2 sukuk rating

Published on 18 Sep 2023.

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RAM Ratings has affirmed the rating of TIME dotCom Berhad’s (TIME or the Group) RM1 bil Islamic Medium-Term Notes Programme (2017/2037) at AA2/Stable. 

The rating is premised on TIME’s solid operational performance and resilient financial profile. TIME’s strategic focus on high-density, high-rise buildings has proven to yield better margins and augment its customer base quicker. As such, the Group’s revenue and operating profit before depreciation, interest and tax stayed on an uptrend. Notwithstanding its capital-intensive business, TIME has generated positive free operating cash flow and been in a net cash position since 2014. 

On 20 April 2023, TIME divested its data centre business to DigitalBridge Group, Inc, keeping only a 30% stake in AIMS Data Centre (Thailand) Ltd and AIMS Data Centre Holding Sdn Bhd. One-off disposal gains totalling RM2.3 bil will heavily boost its bottom line this year, with TIME retaining RM1 bil of proceeds for reinvestments. For subsequent years, the earnings loss from the AIMS stake divestment is expected to be manageable at 8% of the Group’s net profit. With a sizeable cash pile post-divestment, TIME’s superior liquidity and credit metrics remain unaffected even under our stressed cashflow analysis of hefty capital expenditure and investment outflows, alongside moderate revenue growth.

The evolving technological landscape might present a risk to the Group. The rollout of the 5G network could hinder demand for fixed broadband in the longer term if cellular players are able to offer greater speed and connectivity at lower prices. In any case, we do not expect the criticality of TIME’s fibre network to be impacted overnight.  


Analytical contacts
Chu Jia Ying
(603) 3385 2519

Davinder Kaur Gill
(603) 3385 2525

Media contact
Sakinah Arifin
(603) 3385 2500


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 2023 by RAM Rating Services Berhad

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