[RAM] RAM Ratings affirms INTI's AAA(fg)/Stable issue rating

RAM Ratings has affirmed the AAA(fg)/Stable rating of INTI Universal Holdings Sdn Bhd’s (INTI or the Group) RM300 mil 5-year guaranteed Medium-Term Notes 2023/2028 (MTN). The facility is backed by an irrevocable and unconditional guarantee from Credit Guarantee and Investment Facility (CGIF, a trust fund of Asian Development Bank), itself rated AAA/Stable/P1 by RAM. The guarantee elevates the credit profile of the MTN above INTI’s standalone risk, aligning the issue rating with that of the guarantor.

INTI’s major shareholder, XJ International Holdings Co. Ltd. (XJ), has made meaningful progress in resolving the default on its convertible bonds (CBs). The Hong Kong High Court dismissed a winding-up petition against XJ in August 2024, a decision subsequently upheld by the Court of Appeal in June 2025, thereby removing immediate insolvency risk. Following these legal resolutions, XJ secured bondholder approval for a debt restructuring and redeemed the remaining CBs in September 2025. Importantly, XJ’s operations remained unaffected, as its other lenders refrained from triggering cross-defaults. Furthermore, the restrictions and covenants tied to CGIF’s guarantee on the MTN operated as intended, preserving the Group’s strong balance sheet and liquidity.

On a standalone basis, INTI posted higher revenue of RM226.9 mil in FY Aug 2024 (FY Aug 2023: RM205.5 mil) on the back of an 8% recovery in student enrolment. However, earnings were softer as heftier international recruitment costs and operating expenses were front-loaded, pulling down operating profit before depreciation, interest and tax (OPBDIT) to RM28.1 mil and OPBDIT margin to 12.4%. 

INTI’s performance improved further in 9M FY Aug 2025 with student enrolment rising about 20% year-on-year, pointing to a better financial showing going forward. The Group’s liquidity position is expected to remain strong, supported by improving operating performance and continued restrictions imposed by CGIF. INTI remains in a net cash position with RM296.4 mil of cash and short-term funds, comfortably covering RM176.4 mil in borrowings as at end-6M fiscal 2025. 


Analytical contacts
Darrel Tiang
(603) 2708 8219
darrel@ram.com.my

Thong Mun Wai
(603) 2708 8255
munwai@ram.com.my

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Sakinah Arifin
(603) 2708 8212
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