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RAM Ratings affirms TY Consolidated Capital's First Tranche Senior MTN at AAA/Stable
Published on 25 Sep 2026.
RAM Ratings has affirmed the AAA/Stable rating of the RM200 million Senior Medium-Term Notes (MTN) issued under TY Consolidated Capital Berhad's (the Issuer) RM231 mil First Tranche MTN (2025/2030), which forms part of its RM500 million MTN Programme. The programme facilitates the securitisation of gold-backed pawn loans originated by subsidiaries of Ta Yoong Sdn Bhd, the transactions’ sponsor and servicer. The RM31 million Junior MTN are unrated.
The affirmation reflects the stronger than expected performance of the underlying gold-backed pawn loan portfolio, as evidenced by minimal defaults and full recoveries since issuance. These factors, together with the transaction’s capped distributions at RM3 mil (or 10% coupon rate per annum) relative to average monthly collections of RM12 mil, have resulted in the credit enhancement increasing significantly, with overcollateralisation (OC) strengthening to 40% as at end-June 2026 from 15.5% at financial close, and well above the required OC under RAM’s AAA stress.
Since issuance, there were an average of RM59 mil of newly purchased and rolled over pawn loan receivables each month, increasing the securitised portfolio’s outstanding principal balance to RM274.9 mil as at end-June 2026 from RM231.0 mil at closing. Our review of more recent static pool data indicates that defaults, recoveries and early settlements have broadly tracked the assumptions adopted at the initial rating assessment. Although higher gold prices accelerated repayments of 2025-vintage loans, we have maintained our stressed cashflow assumptions, notwithstanding the still limited seasoning of the portfolio, particularly against a backdrop of elevated gold prices.
As at end-June 2026, relatively unseasoned loans originated during the early-2026 gold price peak accounted for about half of the securitised portfolio and carried an average loan-to-value of 70%. This concentration tempers the otherwise strong collateral performance, with near full recoveries on defaulted pawn loans, which could weaken if gold prices reverse sharply. Nonetheless, the transaction’s rapid amortisation profile limits the period over which the securitised portfolio is exposed to adverse gold price movements, with residual gold price risk borne by the Originator beyond the transaction’s rapid amortisation horizon.
Analytical contact
Lim Chern Yit
(603) 2708 8302
chernyit@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.
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Published by RAM Rating Services Berhad
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