RAM Ratings affirms AAA/Stable rating of Eternal Icon’s Senior Class ASEAN Green MTNs

Published on 19 Mar 2025.

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RAM Ratings has affirmed the AAA/Stable rating of the Senior Class ASEAN Green Second Medium-Term Notes (MTNs) issued by Eternal Icon Sdn Bhd (Eternal Icon or the Issuer) under its RM400.0 mil MTN Programme. Eternal Icon is a special-purpose vehicle incorporated to undertake the securitisation of Plaza 33, a 14-storey integrated office tower in Petaling Jaya. 

The affirmation is premised on the transaction’s superior collateral cover, as reflected in the loan to value ratio of 35.6% and stressed debt service coverage ratio of 2.97 times, based on RAM’s assessed adjusted valuation of RM244.44 mil for Plaza 33. Overall, Plaza 33 is viewed to have an above-average property profile, with a RAM Property Score of O-3.70 (maximum: O-5.00). Notably, its moderate leverage provides a sturdy collateral cover to buffer against risks of performance deterioration without affecting the rating. 

In FY Dec 2024, Plaza 33’s net property income was unchanged y-o-y at RM19.2 mil due to protracted delays in signing on new tenants. Its performance nevertheless is poised to improve on the back of secured new tenancies, expansion by existing tenants and higher rental renewal rate for expiring tenancies. Consequently, the Property’s occupancy is expected to increase to 93% by FY Dec 2025, with a higher average rental rate that will put it on track to meet our sustainable cashflow assumption of RM22.0 mil by next year. 

 

Analytical contacts
Lai Jing Wei  
(603) 3385 2501
jingwei@ram.com.my

Lim Chern Yit
(603) 3385 2528
chernyit@ram.com.my 

Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my

 

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.

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