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RAM Ratings upgrades YTLPI’s ratings to AAA
Published on 28 Jan 2026.
RAM Ratings has upgraded the long-term ratings of YTL Power International Berhad’s (YTLPI or the Group) sukuk programmes. Concurrently, the outlook on the facilities has been revised to stable from positive. The short-term rating remains at P1 (Table 1).
The upgrade reflects sustained improvements in YTLPI’s fundamental operating and financial profile, underpinned by demonstrable strengthening in its core investments, as evidenced by the growth in the Group’s ROCE to around 9.0% over the past three years (fiscal 2021: 3.6%). These improvements are supported by YTLPI’s sturdy track record in long-term, regulated concession businesses – primarily infrastructure and utilities – as well as its superior liquidity and financial flexibility, which provide substantial financial buffers and leverage headroom.
A strong turnaround in profitability from core power generation and water subsidiaries has propelled earnings, with operating profit before depreciation, interest and tax (OPBDIT) tripling over five years to reach a high of RM6.5 bil in fiscal 2024. The Group’s pre-tax profit now exceeds RM2 bil annually. The expansion into data centers and artificial intelligence, alongside contributions from its Jordan power plant and upcoming renewable energy assets, is expected to further diversify and grow earnings.
As an investment holding company, YTLPI relies on returns of investee companies – either through operating cashflows, dividends or capital gains from divestments – to support its ongoing operations and debt obligations. YTLPI’s company-level operating cash flow (OCF)-to-net-debt coverage ratio came in at a robust 2.71 times for fiscal 2025, and is expected to remain sound, despite a projected increase in debt for its digital business expansion. Annual dividend flows (around RM0.9 – 1.6 bil per annum) are expected to anchor its coverage ratios above the 0.30 times threshold to maintain AAA ratings. Furthermore, the Group’s announcement in early 2025 of a warrants conversion corporate exercise to expand its equity base and diversify funding of future investments should help reduce reliance on debt.
While the Group’s digital business and renewable ventures introduce execution risks, initiatives such as the green data centre park, artificial intelligence/cloud services and the hydrogen-ready plant in Singapore, present medium-term growth opportunities.
Table 1: YTLPI’s debt facilities
Analytical contacts
Neo Xue Wei, CFA
(603) 2708 8241
xuewei@ram.com.my
Davinder Kaur Gill
(603) 2780 8220
davinder@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
© Copyright 2026 by RAM Rating Services Berhad
