RAM Ratings Upgrades YTL Corp, YTL Power Bonds To AAA

KUALA LUMPUR, Jan 28 (Bernama) -- RAM Rating Services Bhd (RAM Ratings) has upgraded the long-term ratings of YTL Corporation Bhd’s (YTL Corp) debt programmes to AAA, citing sustained improvements in the group’s operating performance, profitability and financial profile.

In a statement today, RAM Ratings said the outlook on the facilities has been revised to stable from positive, while the short-term rating remains at P1.

“The rating upgrade reflects demonstrated and sustained improvements in YTL Corp’s fundamental operating and financial profile, underpinned by robust performance across the group’s core investments,” it said. 

RAM Ratings said YTL Corp’s return on capital employed (ROCE) strengthened to eight to 10 per cent over the past two years from about five per cent previously, supported by resilient earnings across its regulated utilities, cement, hospitality and property segments.

“The group’s diversified business portfolio, further complemented by excellent liquidity and financial flexibility, continues to provide substantial financial buffers and leverage headroom,” it said.

In a separate statement, RAM Ratings also upgraded the long-term ratings of YTL Power International Bhd’s sukuk programmes to AAA, with a stable outlook, while the short-term rating remains at P1.

It said the upgrade reflected sustained improvements in YTL Power’s operating and financial profile, with the group’s return on capital employed rising to about nine per cent over the past three years from 3.6 per cent in the financial year ended June 30, 2021 (FY2021).

“These improvements are supported by YTL Power’s sturdy track record in long-term, regulated concession businesses, primarily infrastructure and utilities, as well as its superior liquidity and financial flexibility, which provide substantial financial buffers and leverage headroom,” it said. 

RAM Ratings added that YTL Power’s operating profit before depreciation, interest and tax tripled over five years to RM6.5 billion in FY2024, with pre-tax profit exceeding RM2 billion annually.

--BERNAMA