[RAM] RAM Ratings affirms AA2(s)/P1(s) ratings of debt programmes issued by PROTON's SPV

RAM Ratings has affirmed the AA₂(s)/Stable rating of the RM4.0 bil Islamic Medium-Term Notes Programme (2021/2051) and P1(s) rating on the RM1.0 bil Islamic Commercial Papers Programme (2021/2028) issued by PONSB Capital Berhad, a special purpose vehicle (SPV) of Perusahaan Otomobil Nasional Sdn Bhd (PROTON or the Company). The programmes have a combined limit of RM4.0 bil.

The (s) suffix reflects the credit strength of PROTON – acting as the purchase undertaking obligor and its parent, Proton Holdings Berhad (Proton Holdings or the Group). The credit profile of the two entities are equated given their highly interconnected operation and financial profiles.

As at end-August 2025, the Group’s debt level eased to around RM4.66 bil following the redemption of redeemable convertible cumulative preference shares (RCCPS) borrowings (end-Dec 2024: RM4.75 bil). Although leverage remains elevated due to hefty investment requirements, improved profitability reduced annualised debt to OPBDIT ratio to 4.16 times (end-Dec 2024: 4.81 times). Annualised funds from operations (FFO) debt cover increased marginally to 0.28 times (end-Dec 2024: 0.25 times), with further gradual deleveraging anticipated over the near term.

The issue ratings also incorporate an uplift from extraordinary financial support from Geely Automobile Holdings Ltd (GAH), that holds a 49.9% stake in the Group. Despite DRB-HICOM’s marginally higher 50.1% shareholding, we note that PROTON plays an important role in facilitating GAH’s penetration into ASEAN and other markets. This, combined with GAH’s technological, financial and managerial involvement, positions it as the more influential over the Group. This supports our view that GAH is ‘highly likely’ to provide extraordinary support to PROTON, if required, underpinning uplift to the issue ratings.


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Nur Hadhirah Binti Bahrom 
(603) 2708 8207
hadhirah@ram.com.my

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

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