[RAM] RAM Ratings upgrades Exsim Capital's Tranche 5 IMTN to AA2/Positive, affirms Tranche 4 and 6 IMTN ratings

RAM Ratings has upgraded the rating of Exsim Capital Resources Berhad’s (Exsim Capital or the Issuer) RM365 mil Tranche 5 Islamic medium term notes (IMTN) to AA₂/Positive from AA₃/Stable. We have also affirmed the AA₃/Stable ratings of the Issuer’s RM300 mil Tranche 4 and RM310 mil Tranche 6 IMTN. These issuances were made under Exsim Capital’s RM2 bil Sukuk Musharakah Programme.



The upgrade of the Tranche 5 IMTN rating reflects the advanced construction progress of the underlying projects – D’Clover Residences (92%) and D’Terra Residences (86%). The handover of vacant possession (VP) to homeowners is largely on track for 2Q 2026 (i.e. May 2026), with ample time buffers until the legal VP dates in February 2027 to mitigate any external delays. As both projects’ physical structures have reached rooftop level with mainly internal work remaining, construction risk is minimal. The rating outlook is positive on our expectation that the Tranche 5 IMTN will become fully cash-backed upon VP delivery by 2Q 2026, about a year ahead of the legal VP dates.

The Tranche 4 and Tranche 6 IMTN rating affirmations are premised on the available time buffer between the targeted Certificate of Completion and Compliance (CCC)/VP and expected maturity dates, the transactions’ adequate liquidity and the construction progress of the underlying projects. During the review period, the construction period for Kyliez Suites (backing Tranche 6) was revised from 39 months to 46.5 months through a supplemental agreement. 

The developer anticipates further extensions to the contractors for Fiddlewoodz, D’Clover and D’Terra projects owing to ongoing logistical and/or space challenges. VP for Hugoz is nevertheless still expected to be delivered within the legal CCC/VP timeframe, while VP dates for The Fiddlewoodz and Kyliez may coincide with some sales and purchase agreements’ earlier legal delivery dates. Any exposure to liquidated damages is envisaged to be minimal. All projects remain on schedule for completion before the respective expected maturity dates. 

The liquidity positions of the Tranche 4 and Tranche 6 IMTN continue to be supported by healthy buyer profiles and the respective unrated Islamic commercial papers (ICP) facilities established alongside the IMTNs. Since issuance, the default rates of the three projects have stayed well below RAM’s applied default frequency (The Fiddlewoodz: 1.7%; Hugoz: 0.2%; Kyliez: nil). As at end-March 2025, The Fiddlewoodz and Kyliez each had one unsold unit while Hugoz had seven. Looking ahead, we expect minimal drawdowns from the ICP facilities as all projects are anticipated to generate positive net monthly cash flows as construction progresses. No construction cost overruns have been observed to date, largely owing to the fixed-price lump-sum contracts.




Analytical contacts
Joel Thum
(603) 2708 8232 
joel@ram.com.my

Lim Chern Yit
(603) 2708 8302 
chernyit@ram.com.my

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