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RAM Ratings affirms CelcomDigi Telecommunications’ AAA/Stable sukuk rating
Published on 28 Sep 2026.
RAM Ratings has affirmed the AAA/Stable rating of CelcomDigi Telecommunications Sdn Bhd’s RM5 bil Islamic Medium-Term Notes Programme (2017/-).
The rating reflects the dominant mobile market position and strong financial profile of parent company CelcomDigi Berhad (CelcomDigi or the Group) after the Celcom-Digi merger. Given the close financial and operational integration between CelcomDigi Telecommunications and the Group, we assess these entities on a consolidated basis.
CelcomDigi remains Malaysia’s largest mobile telecommunications provider, with 20.3 million mobile subscribers as at end-June 2026. The Group accounted for 39% of the mobile subscriber market and 46% of industry mobile revenue, underscoring its scale and market leadership. These strengths, together with its strong cashflow generation, continue to underpin the Group’s credit profile. More than 90% of network and IT integration and modernisation had been completed as at end-June 2026, with merger synergies expected to deliver annual recurring cost savings of about RM800 mil from 2027, supporting operating efficiency and earnings growth though higher 5G access fees and other operating costs may partially offset some of these margin uplift.
For FY Dec 2025, revenue increased 2% to RM12.96 bil, driven by growth in the postpaid, fibre, home and wholesale businesses. While operating profit before depreciation, interest and tax fell 5% to RM5.43 bil due to higher 5G access fees, device costs and residual integration expenses, pre-tax profit improved to RM2.10 bil, benefiting from lower depreciation and the absence of impairment charges. Total debt stood at RM14.46 bil as at end-June 2026, compared to RM13.85 bil as at end-December 2025, as the Group drew down borrowings ahead of upcoming debt maturities. Despite the higher debt balance, lease-adjusted funds from operations debt coverage remained broadly stable at 0.39 times (FY Dec 2025: 0.40 times) and continues to support the current rating. RAM expects modest but steady earnings growth over the next few years, supported by gradual topline expansion and improving operational efficiencies as integration progresses.
CelcomDigi’s equity interest in Digital Nasional Berhad (DNB) – the entity responsible for deploying Malaysia’s first 5G network – will rise to about 33.33% upon completion of the put option exercise after MOF Inc’s exit. While the Group’s cumulative funding contributions of RM551.9 mil and acquisition outlay of RM327.9 mil have not materially affected its credit profile, additional funding may be required to support DNB’s future operating and financing needs. At this stage, we have not incorporated further significant incremental investments or additional 5G-related capital expenditure into our assessment given limited visibility over DNB’s long-term funding requirements, capital structure and investment returns. Funding commitments that are materially above our expectations, particularly if debt-funded, could weaken CelcomDigi’s financial metrics and reduce headroom at the current rating.
Analytical contacts
Lee Jo Yee
(603) 2708 8261
joyee@ram.com.my
Karin Koh, CFA
(603) 2708 8237
karin@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
