[RAM] RAM Ratings affirms Exsim Capital's Tranche 4, 6 and 7 IMTN ratings

RAM Ratings has affirmed the ratings of Exsim Capital Resources Berhad’s (Exsim Capital or the Issuer) RM300 mil Tranche 4, RM310 mil Tranche 6 and RM455 mil Tranche 7 Islamic Medium-Term Notes (IMTN), issued under its RM2 bil Sukuk Musharakah Programme.



The affirmations reflect adequate remaining time to expected maturity, satisfactory liquidity positions and overall construction progress of the underlying projects. Construction at The Fiddlewoodz (backing Tranche 4) has been delayed by logistical challenges, road closures and stricter enforcement on overloaded lorries. While the legal certificate of practical completion (CPC) date has moved beyond the legal certificate of completion and compliance (CCC) date following an extension of time (EOT), potential liquidated damages (LDs) are considered immaterial, assuming vacant possession by end-June 2026.

For Tranche 6, progress varies between projects. Kyliez may require an estimated extension of up to six months, potentially aligning its CCC with earlier sale and purchase agreement delivery dates. Any LD exposure is expected to be minimal. Hugoz, despite multiple EOTs arising mainly from road closures, retains an adequate buffer of 10 months to the legal CCC date. Projects backing Tranche 7 (Kingswoodz and Noordinz) remain broadly on track and are expected to be completed ahead of the respective expected maturities.

Across all tranches, cash flow and liquidity continue to be supported by healthy buyer profiles and the availability of unrated Islamic commercial papers (ICP). Default rates and recoveries remain well below stressed assumptions, with no construction cost overruns recorded to date. Drawdowns under Tranche 6 and Tranche 7 ICP facilities are expected to be minimal, while no drawdowns are anticipated for Tranche 4 ICP.



 

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Joel Thum
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L Nurisya Abdullah
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Lim Chern Yit
(603) 2708 8302 
chernyit@ram.com.my

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