RAM Ratings monitoring IJM Corp following recent material developments

Published on 23 Jan 2026.

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RAM Ratings is closely monitoring developments at IJM Corporation Berhad (IJM Corp or the Group) following Sunway Berhad’s (Sunway) conditional voluntary take-over offer for IJM Corp announced on 12 January 2026. This was shortly followed by news of the Malaysian Anti-Corruption Commission (MACC) commencing investigations into alleged money-laundering activities at the Group.

On its own, Sunway’s proposed take-over offer, conditional on securing acceptances in excess of 50% of IJM Corp’s voting shares, is assessed as broadly credit-neutral to mildly positive to the Group in the near term. If successful, the combined entity stands to become one of the largest and diversified domestic construction and property conglomerate. The combined outstanding construction order book is estimated at circa RM14 bil while undeveloped land bank stands at 5,500 acres. Contingent on successful post-integration and alignment, the enlarged entity may benefit from increased operational scale, improved market access, enhanced synergies, procurement efficiencies and higher sustained earnings.

The ongoing MACC investigation could delay or complicate the execution of Sunway’s offer. On 19 January 2026, IJM Corp confirmed that officers from the MACC and the Inland Revenue Board (IRB) visited its offices to obtain information. The Group has clarified that it is not aware of any investigation by the UK’s Serious Fraud Office and has denied allegations of money laundering. Without further information, the outcome of this investigation remains indeterminate.

Currently, IJM Corp has RM500 mil of outstanding Islamic Commercial Papers scheduled to mature on 20 February and 25 February 2026 that are expected to be refinanced. The AA₃/Stable rating of IJM Corp’s RM3.0 bil Sukuk Murabahah Programme and the AA₃(s)/Stable/P1(s) ratings of the RM5.0 bil Islamic Medium-Term Notes Programme and Islamic Commercial Papers Programme issued by IJM Treasury Management Sdn Bhd were affirmed on 31 December 2025. Separately, the A₂(s)/Stable rating of IJM Land Berhad’s RM2 bil Perpetual Sukuk Programme was affirmed on 16 December 2025. The issue ratings under IJM Treasury Management and IJM Land reflect the unconditional and irrevocable guarantee provided by IJM Corp.

At this time, RAM Ratings has determined that no credit rating action is warranted on IJM Corp and its related programmes. All existing ratings on IJM Corp and its associated issuances will be maintained as they currently stand. RAM Ratings will continue to closely monitor ongoing developments related to the Group and provide timely announcements to the market as necessary, should there be changes to the Group’s credit profile.

 

Analytical contacts
Ben Inn
(603) 2708 8290
ben@ram.com.my

Thong Mun Wai
(603) 2708 8255
munwai@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
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.

Published by RAM Rating Services Berhad
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