MARC Ratings has assigned preliminary ratings of MARC-1IS(cg)/AA-IS(cg) to Sunway Treasury Sukuk Sdn Bhd’s proposed RM3.0 billion Islamic Commercial Papers (ICP)/ Islamic Medium-Term Notes (IMTN) Programme (Sukuk Mudharabah Programme). The rating outlook is stable. Proceeds from issuances under the proposed programme will mainly be used to fund working capital and refinance existing debt and intercompany advances.
MARC Ratings maintains its ratings on Sunway Treasury Sukuk’s existing RM10.0 billion programme at MARC-1IS(cg)/AA-IS(cg), as affirmed on 29 May 2025, with a total outstanding of RM910.0 million as of 10 November 2025. The rating agency also maintains its ratings of MARC-1/AA- and AIS on issuances by holding company Sunway Berhad, namely the RM2.0 billion CP/MTN and RM5.0 billion Perpetual Sukuk Programmes (the full credit analysis was published on 13 August 2025). MARC Ratings notes that Sunway Treasury Sukuk’s existing RM10.0 billion programme is set to expire on 20 March 2026 with the outstanding likely to be refinanced.
Sunway Berhad’s credit profile remains broadly unchanged since the last review in May 2025. Group revenue rose 64.4% y-o-y to RM4.93 billion as at end-1H2025, driven by stronger contributions from all divisions except property development. Pre-tax profit increased 23.3% to RM700.1 million, although this was partly offset by softer results in the property development and healthcare segments. The property division’s performance remained consistent with the group’s development cycle, while the performance of the healthcare division reflected ramp-up costs from newly opened hospitals.
Despite higher borrowings, the group’s improved operating performance and cash flow generation continue to support its debt-servicing capacity. Cash flow from operations turned positive in 1H2025, underpinned by higher profitability and lower working capital outflows, contributing to stronger interest coverage. As at end-1H2025, consolidated borrowings stood at RM11.9 billion, with gross and net debt-to-equity ratios of 0.73x and 0.39x. Proceeds from the borrowings were mainly used for working capital. The rating agency views that Sunway’s borrowings remain supported by the group’s strong cash generating capacity and its sizeable cash balance, providing a sufficient liquidity buffer against short-term funding needs.