[RAM] RAM Ratings affirms AAA/Stable rating of KLCC Property Holdings Berhad's sukuk

RAM Ratings has affirmed the AAA/Stable rating of KLCC Property Holdings Berhad’s (KLCCP or the Company) RM5.0 bil Perpetual Islamic Medium-Term Notes Programme. The rating is premised on the Company’s high-quality, largely Kuala Lumpur City Centre (KLCC)- based property portfolio and its robust financial profile, characterised by low leverage and solid fixed charge cover. 

KLCCP, together with KLCC Real Estate Investment Trust (REIT), forms the KLCCP Stapled Group (the Stapled Group or the Group), Malaysia’s largest REIT by property value (RM16.7 bil) and market capitalisation (RM15.7 bil) as at end-2025. The Group’s KLCC-centric portfolio is well diversified by revenue contribution across office (34%), retail (32%), management services (21%) and hotels (13%) segments, supporting earnings resilience. Flagship assets, including the PETRONAS Twin Towers and Suria KLCC have sustained portfolio occupancy at over 95% and premium rental rates. Cash flow visibility is further supported by Suria KLCC’s largely fixed rent structure and long-term master leases at Menara Dayabumi and Menara Maxis. 

The rating also reflects incorporates a rating uplift, reflecting its very strong linkage to its ultimate parent, Petroliam Nasional Berhad (PETRONAS), which holds a 66.94% effective stake in the Stapled Group. In our view, KLCCP (through its parent KLCC (Holdings) Sdn Bhd), is strategically important to PETRONAS’s long-term asset ownership and recurring cashflow strategy. Accordingly, we expect a ‘high’ likelihood of extraordinary support from PETRONAS in the remote event of financial distress.  

KLCCP’s credit metrics remain robust, with leverage and fixed charge coverage ratios standing at a respective 0.31 times and 5.14 times as at end-December 2025. The Group’s strong market access, diversified funding profile and ample liquidity underpin financial flexibility, including its capacity to meet distributions and capital expenditure needs. While operating conditions for the retail and hospitality segments remain subject to cyclical demand and cost pressures, we expect the Group’s prime assets and tenant mix to support stable performance. 


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

Tan Yan Choong 
(603) 2708 8256
yanchoong@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my