MARC Ratings has upgraded its ratings on Sunway Group’s issuances as follows:
- Sunway Treasury Sukuk Sdn Bhd’s RM 3.0 billion Islamic Commercial Papers/ Islamic Medium-Term Notes (ICP/IMTN) Programme to MARC-1IS(cg)/AAIS(cg) from MARC-1IS(cg)/AA-IS(cg)
- Sunway Berhad’s RM 2.0 billion Commercial Papers/ Medium-Term Notes (CP/MTN) Programme to MARC-1/AA from MARC-1/AA-
- Sunway Berhad’s RM5.0 billion Perpetual Sukuk Programme to A+IS from AIS
- Sunway Treasury Sukuk Sdn Bhd’s RM10.0 billion IMTN Programme with Al-Kafalah guarantee from Sunway Berhad to AAIS from AA-IS
The outlook on all ratings is stable.
The ratings upgrade reflects Sunway Group’s strengthened balance sheet profile following the completion of Sunway Healthcare Holdings Berhad’s (SHH) listing, and a sustained improvement in the group’s earnings profile over recent years. The listing of SHH in March 2026 has significantly improved the group’s leverage measures through a larger equity base post-consolidation, while earnings performance has also continued to benefit from stronger contributions across its key operating segments.
Upon the completion of SHH’s listing, the group’s leverage improved despite the consolidation of SHH’s borrowings. As at end-1H2026, debt-to-equity (DE) and net DE ratios improved to 0.62x and 0.29x, respectively, from 0.88x and 0.48x as at end-2025. The stronger leverage position provides additional financial headroom to support the group’s future growth plans.
Sunway Group’s established track record in property development, construction, property investment and healthcare, together with its strong market position across these sectors, remains a key rating driver. The group’s diversified earnings base built on its integrated real estate and infrastructure businesses supports earnings resilience through varying business cycles. These strengths are moderated by the group’s sizeable debt load, moderate cash flow metrics and execution risks associated with its ongoing expansion plans.
MARC Ratings views the group’s healthy earnings visibility positively, supported by unbilled property sales of RM9.5 billion as at end-2025 and listed subsidiary Sunway Construction Berhad’s (SunCon) outstanding order book of RM5.7 billion. The acquisition of Sunway MCL has strengthened the group’s development pipeline and presence in Singapore, while its sizeable landbank continues to provide long-term development opportunities. Internal construction jobs from the property development and healthcare divisions continue to support the replenishment of its construction order book.
The property investment division continues to provide stable, recurring earnings through its portfolio of retail, hospitality, and office properties, while occupancy across its retail portfolio remained robust at an average of 97% as at end-2025. Meanwhile, the healthcare division continues to expand its operational capacity through greenfield and brownfield developements, including the commissioning of Sunway Medical Centre (SMC) Damansara and SMC Ipoh. The division’s growth prospects remain well-supported by increasing patient volumes, expanded bed capacity and planned healthcare developments.