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RAM Ratings assigns AA1/Stable/P1 corporate credit ratings to Sunway Berhad
Published on 08 Sep 2026.
RAM Ratings has assigned initial corporate credit ratings of AA1/Stable/P1 to Sunway Berhad (Sunway or the Group). The ratings are anchored by Sunway’s entrenched position as one of Malaysia’s largest diversified conglomerates, supported by established market positions across property development, construction, property investment and healthcare. The Group’s extensive vertical integration across its core property value chain underpins a resilient business model and a more stable earnings profile relative to peers. These strengths are moderated by the Group’s modest debt coverage metrics, reflecting a sizeable debt burden accumulated to fund business expansion.
Earnings visibility over the medium to long term remains strong. As at August 2026, the Group had RM8.3 billion in unbilled property sales and an outstanding construction order book of RM10.5 billion, providing a sizeable pipeline of future revenue. This is supported by healthy property take-up rates and steady execution progress across ongoing projects. Longer-term growth prospects are supported by a 2,338-acre landbank, with an estimated gross development value of RM87.7 billion, and an active construction tender book of RM14.2 billion. The healthcare segment is also expected to become an increasingly important earnings contributor over time, driven by ongoing capacity expansion and the continued ramp-up of newer hospitals.
RAM views positively Sunway’s demonstrated ability to incubate, scale and monetise businesses through established strategic platforms such as Sunway REIT, Sunway Construction Group Berhad and Sunway Healthcare Holdings Berhad. The Group’s major expansion initiatives are largely self-financed at the operating-division level, reducing funding concentration and refinancing pressure at the holding company. The Group’s sizeable pool of unencumbered assets and RM1.2 billion of committed undrawn funding lines as at end-December 2025 provide additional financial flexibility and support balance-sheet management.
Debt coverage remains the key rating constraint. Despite recent deleveraging following the listing of Sunway Healthcare Holdings Berhad, the Group’s funds from operations (FFO) debt coverage and operating cash flow (OCF) debt coverage remain modest for the assigned ratings. Given sizeable cash holdings, however, net debt-based metrics are meaningfully stronger at 0.24 times and 0.32 times, respectively in FY Dec 2025. Under RAM’s projections, gross FFO and OCF debt coverage over FY Dec 2026 to FY Dec 2028 will range between 0.11 times and 0.16 times, while corresponding net-debt ratios are expected to range between 0.19 times and 0.28 times, based on an estimated peak debt load of RM18.0 billion. In assessing the Group’s debt protection, RAM takes note of the quality and stability of Sunway’s earnings across its diversified asset base, as well as management’s proven execution track record in driving growth.
Analytical contacts
Kee Hwai Zher
(603) 2708 8259
hwaizher.kee@ram.com.my
Tan Han Nee
(603) 2708 8322
hannee@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
© Copyright 2026 by RAM Rating Services Berhad
