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RAM Ratings affirms Paradigm Capital’s 2025-Issue 1 MTN ratings
Published on 10 Jul 2026.
RAM Ratings has affirmed the ratings of the 2025-Issue 1 Medium-Term Notes (MTNs) issued under Paradigm Capital Berhad’s RM5.0 bil MTN Programme (see table).
The MTNs are backed by a portfolio of three retail assets – Paradigm Mall Petaling Jaya (PMPJ), Paradigm Mall Johor Bahru (PMJB) and Bukit Tinggi Shopping Centre (BTSC). Paradigm Capital serves as a funding conduit of Paradigm Real Estate Investment Trust (Paradigm REIT) to facilitate fundraising under the MTN programme.
The affirmations reflect sustained improvement in the portfolio’s operating and cashflow performance, underpinned by their strong underlying credit attributes and the REIT Manager’s proactive tenant remixing and lease management. As at end-March 2026, the malls recorded near-full occupancy of 99.5% (+0.3% y-o-y), with positive rental reversions and a well-diversified tenant base, where the top 10 tenants (excluding BTSC) contribute not more than 16% of gross rental income. BTSC’s long-term master lease with AEON CO. (M) BHD. further strengthens portfolio cashflow stability, extending the weighted average lease expiry to 2.4 years.
Net property income rose 6.1% to RM156 mil in FY Dec 2025, sustaining its positive trajectory above RAM’s sustainable cashflow (SCF) assumption of RM147 mil, despite lower but still healthy margins of 66.4% (FY Dec 2024: 67.3%) due to higher operating costs. The strong asset quality coupled with management’s energy efficiency initiatives are anticipated to sustain margins going forward.
While the portfolio’s cashflow at current levels already provides stronger credit support than required for the affirmed ratings, we are maintaining the current SCF assumption pending visibility on the retention of current occupancy and rental rates through the major lease renewal cycles in 2026 and 2027, and on the execution of PMJB’s tenant and space reconfiguration initiatives. Based on the portfolio SCF and capitalisation rate assumptions, the assessed adjusted valuation of RM1.74 bil (70.4% of latest combined market valuation) translates into LTVs and stressed DSCRs which remain consistent with the affirmed ratings.
Analytical contacts
Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my
Tan Han Nee
(603) 2708 8322
hannee@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
